If a stock has a 50% probability of having actually an expected return of 10% and also a 50% probability of having an supposed return the 20%, what is the in its entirety expected return because that this stock?-10%-20%-15%-30%-Impossible to calculate

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Mary own a risky stock and anticipates earning 16.5 percent on her invest in the stock. Which among the following finest describes the 16.5 percent rate?-Expected return-Real return-Market rate-Systematic return-Risk premium
Stock A comprises 28 percent that Susan"s portfolio. Which one of the adhering to terms uses to the 28 percent?-Portfolio variance-Portfolio typical deviation-Portfolio weight-Portfolio intended return-Portfolio beta
A share is supposed to return 13 percent in an financial boom, 10 percent in a regular economy, and also 3 percent in a recessionary economy. Which among the adhering to will lower the all at once expected price of return top top this stock?-An boost in the rate of return in a recessionary economy-An boost in the probability that an financial boom-A diminish in the probability that a recession occurring-A decrease in the probability the an financial boom-An increase in the price of return because that a typical economy
Which among the complying with is the best example the unsystematic risk?-Inflation exceeding industry expectations-A warehouse fire-Decrease in corporate taxation rates-Decrease in the value of the dollar-Increase in customer spending
Portfolio diversification eliminates:-All investment risk-The portfolio danger premium-Market risk-Unsystematic risk-The reward for bearing risk
ExplanationStock 1. Value: $32,960 Beta: 0.76Stock 2. Value: $15,780 Beta: 1.31Stock 3. Value: $8,645 Beta: 1.49Stock 4. Value: $19,920 Beta: .00
Portfolio value = $32,960 + 15,780 + 8,645 + 19,920 = $77,305βP = ($32,960 /$77,305)(.76) + ($15,780/$77,305)(1.31) + ($8,645/$77,305)(1.49) + ($19,920 /$77,305)(0) = .76
Standard deviation measures _____ hazard while beta actions _____ risk.systematic; unsystematicunsystematic; systematictotal; unsystematictotal; systematicasset-specific; market
Consider the following information: standard Deviation Beta protection C 20% 1.25 security K 30% 0.95Which protection has much more total risk?A. Security CB. Security K
Consider the complying with information: standard Deviation Beta protection C 20% 1.25 security K 30% 0.95Which defense has more systemic risk?A. Protection CB. Defense K
Consider the following information: typical Deviation Beta defense C 20% 1.25 protection K 30% 0.95Which defense should have the higher expected return?A. Protection CB. Security K
According to the funding asset pricing model, the supposed return top top a defense will be affected by every one of the following other than the: -Market danger premium-Risk-free rate-Market price of return-Security"s conventional deviation-Security"s beta




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