I am working on compiling all the answers to over 1000 of these questions in order to create a study guide. Any help would be appreciated: I will break them into a few parts.
1. If held for possible resale, long-term government bonds have:
2. The expected rate of return of Stock (X), given a beta of 1.3, risk free rate of 6%, and a market risk premium of 7%, is:
3. Stock A and Stock B are positively correlated. What can we say about their covariance?
4. If the beta of Freon is 0.73, risk-free rate is 5.5% and the market rate of return is 13.5%, calculate the expected rate of return from Freon:
5. The variance of the market return is
6. What is the risk free rate given a beta of .8, a market risk premium of 6%, and an expected return of 9.8%?
7. Beta of a well-diversified portfolio is equal to the average beta of the stock market index.
8. The portion of the risk that can be eliminated by diversification is called:
9. Investments A and B both offer an expected rate of return of 12%. If the standard deviation of A is 20% and that of B is 30%, then investors would:
10. Efficient portfolios are those that offer:
1. If held for possible resale, long-term government bonds have:
2. The expected rate of return of Stock (X), given a beta of 1.3, risk free rate of 6%, and a market risk premium of 7%, is:
3. Stock A and Stock B are positively correlated. What can we say about their covariance?
4. If the beta of Freon is 0.73, risk-free rate is 5.5% and the market rate of return is 13.5%, calculate the expected rate of return from Freon:
5. The variance of the market return is
6. What is the risk free rate given a beta of .8, a market risk premium of 6%, and an expected return of 9.8%?
7. Beta of a well-diversified portfolio is equal to the average beta of the stock market index.
8. The portion of the risk that can be eliminated by diversification is called:
9. Investments A and B both offer an expected rate of return of 12%. If the standard deviation of A is 20% and that of B is 30%, then investors would:
10. Efficient portfolios are those that offer:
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