Who are the experts?Experts are tested by lutz-heilmann.info as experts in their topic location. We testimonial their content and also usage your feedago to store the quality high.


You are watching: A stock with a beta of zero would be expected to have a rate of return equal to:

_____________________________ _____________________________ Answer 1) CAPM = Rf + Beta * (Rm - Rf) beta = 0 CAPM = Rf Option A…View the complete answer
*



See more: Why Does The Outside Of A Bowl Of Soup Get Hot ? Heat Transfer Study Questions Flashcards

Transcribed photo text: 1. A stock with a beta of zero would be intended to have a price of return equal to A.the risk-cost-free price. B.the industry rate C.the prime price. D.the average AAA bond. E. None of the above 2. Both the APT and the CAPM imply a positive relationship between supposed rerevolve and also threat. The APT views.isk A.very similarly to the CAPM through the beta of the security. B.in regards to individual intersecurity correlation versus the beta of the САРМ. C.by means of the industry wide or marketwide components creating correlation in between securities D.the standardized deviation of the covariance. E.None of the over. 3. Shareholders discount many kind of corporate announcements because of their prior expectations. If an announcement causes the price to readjust it will mostly be propelled by NA.the meant part of the announcement. B.market ineffectiveness. C.the unsupposed part of the announcement. D.the organized risk. E. Namong the over. 4. 52 Stock A has an expected rerotate of 20%, and also stock B has an intended rerotate of 4%. However before, the threat of stock A as measured by its variance is 3 times that of stock B. If the 2 stocks are linked equally in a portfolio, what would be the portfolio's intended return? A.4% B.12% C.20% D.Greater than 20% E.Need even more indevelopment to answer 55 5. Diversification can effectively minimize danger. Once a portfolio is diversified the type of threat continuing to be is A.individual protection risk B.riskmuch less protection hazard Chazard pertained to the sector portfolio. D.full conventional deviations. E.Namong the above 553 6. .-0.0089y then what is If the covariance of stock 1 with stock 2 is-O. the covariance of stock 2 through stock 1? A.+0.0085 B.-0.0085 C greater than +0.0085 D.much less than -0.0085 Activa Go to se E.Need additional information 7. The chance set of portfolios is 55 A.all possible rerevolve combicountries of those securities. B.all possible risk combinations of those securities. C.all feasible risk-rerotate combicountries of those securities. D.the ideal or highest possible risk-rerotate combination E.the lowest risk-rerotate combination 55 8. According to the CAPM A.the intended rerotate on a defense is negatively and also non-linicely regarded the security's beta. B.the expected rerevolve on a security is negatively and also linearly related to the security's beta. C.the expected rerotate on a protection is positively and also linearly regarded the security's variance D.the supposed return on a defense is positively and also non-lialmost regarded the security's beta. E.the meant rerevolve on a defense is positively and also lipractically concerned the security's beta. Activat Go to Set