Business, 31.07.2020 05:01 xavierfox1721

Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 6%, and all stocks have independent firm-specific components with a standard deviation of 45%. Portfolios A and B are both well-diversified with the following properties: Portfolio Beta on F1 Beta on F2 Expected Return A 1.5 2.0 31 % B 2.2 –0.2 27 % What is the expected return-beta relationship in this economy? Calculate the risk-free rate, rf, and the factor risk premiums, RP1 and RP2 to complete the equation below. (Do not round intermediate calculations.) E(rP) = rf + (βP1 × RP1) + (βP2 × RP2)

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:30

Which of the following pairs is most similar to each other? a. barter goods and fiat money b. digital money and barter goods c. fiat money and digital money d. commodity money and digital money

Answers: 1

Answer

Business, 21.06.2019 21:40

The economic advisor of a large tire store proposes the demand function d(p)equalsstartfraction 1900 over p minus 40 endfraction , where d(p) is the number of tires of one brand and size that can be sold in one day at price p. answer parts (a) through (e) below. a. recalling that the demand must be positive, what is the domain of this function? the domain consists of all possible values of ▼ for which ▼ p d(p) ▼ does not exist. is positive. is zero. is negative. exists.

Answers: 3

Answer

Business, 22.06.2019 17:00

Oliver is the vice president of production at his company and has been managing the launch of new software systems. he worked with a team of individuals who were tasked to create awareness about a specific product and also to approach potential purchasers of the product. which department managers were part of oliver’s team?

Answers: 3

Answer

Business, 22.06.2019 19:30

The usa today reports that the average expenditure on valentine's day is $100.89. do male and female consumers differ in the amounts they spend? the average expenditure in a sample survey of 47 male consumers was $135.67, and the average expenditure in a sample survey of 38 female consumers was $68.64. based on past surveys, the standard deviation for male consumers is assumed to be $34, and the standard deviation for female consumers is assumed to be $17.

Answers: 1

Answer

You know the right answer?

Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 6%, and al...

Questions