We Do Bankruptcies is a law firm that specializes in providing advice to firms in financial distress. It prospers in recessions wh other firms are struggling. Consequently, its beta is negative, -0.4.

a. If the interest rate on Treasury bills is 6% and the expected return on the market portfolio is 16%, what is the expected retur on the shares of the law firm according to the CAPM?
b. Suppose you invested 60% of your wealth in the market portfolio and the remainder of your wealth in the shares in the law firm. What would be the beta of your portfolio?

Shereen has accidentally overdrawn her checking account this month. , she has a little money in savings and can cover costs for now, but she has to find a way to reduce her monthly spending. which strategy will not shereen reduce her monthly expenses?

Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false

Sales at a fast-food restaurant average $6,000 per day. the restaurant decided to introduce an advertising campaign to increase daily sales. to determine the effectiveness of the advertising campaign, a sample of 49 days of sales were taken. they found that the average daily sales were $6,300 per day. from past history, the restaurant knew that its population standard deviation is about $1,000. if the level of significance is 0.01, have sales increased as a result of the advertising campaign? multiple choicea)fail to reject the null hypothesis.b)reject the null hypothesis and conclude the mean is higher than $6,000 per day.c)reject the null hypothesis and conclude the mean is lower than $6,000 per day.d)reject the null hypothesis and conclude that the mean is equal to $6,000 per day.expert answer