Business, 21.02.2020 01:19 Benitez0212
Consider the following information for stocks A, B and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is each of the correlation coefficients is between 0 and 1). Fund P has one-third of its funds invested in each of the three stocks and the risk-free rate is 5.5%.
Stock
Expected Return
Standard Deviation
Beta
A
9.55%
15%
0.9
B
10.45%
15%
1.1
C
12.70%
15%
1.6
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.
Answers: 3
Business, 22.06.2019 01:20
Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $58. a, compute the percentage total return. (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. what was the dividend yield and the capital gains yield? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answers: 2
Business, 22.06.2019 10:00
Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a
Answers: 3
Business, 22.06.2019 16:30
Which of the following has the largest impact on opportunity cost
Answers: 2
Business, 22.06.2019 19:30
One of the benefits of a well designed ergonomic work environment is low operating costs is true or false
Answers: 3
Consider the following information for stocks A, B and C. The returns on the three stocks are positi...
English, 07.07.2019 04:30
Physics, 07.07.2019 04:30
History, 07.07.2019 04:30
Mathematics, 07.07.2019 04:30
Social Studies, 07.07.2019 04:30
English, 07.07.2019 04:30
Social Studies, 07.07.2019 04:30
Mathematics, 07.07.2019 04:30
English, 07.07.2019 04:30
Mathematics, 07.07.2019 04:30
Mathematics, 07.07.2019 04:30