Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Assume the Ghana Stocl market is expected to generate a return of 18%. Company XYZ is listed on the GSE and its returns are

1) Assume the Ghana Stocl market is expected to generate a return of 18%. Company XYZ is listed on the GSE and its returns are consistently 20% more volatile than the market. Idf the risk free rate in Ghana is 12%, what is the required rate of return of XYZ? What is the risk premium on the stock XYZ

2) A pension fund's average monthly return for the year was 0.9 percent, and the standard deviation was 0.5percent. The fund uses an aggressive strategy as indicated by its beta of 1.7. If the market averaged 0.7 percent, with a standard deviation of 0.3 percent, how did the pension fund perform relative to the market? Assume the monthly risk free rate was 0.2 percent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions