Question
1. If you have an investment in a mutual fund, how can you determine the dollar value of your investment? 2. Which of the following
1. If you have an investment in a mutual fund, how can you determine the dollar value of your investment?
2. Which of the following are empirical asset pricing models? CAPM, FAMA FRENCH 3. BOTH, NEITHER
3. According to the CAPM, which of the following is true for a stock with a beta of 1.5? Its covariance with the market is greater than the variance of the market. Its expected return will be 50% more than the expected return of the market. Adding it to the market portfolio will reduce the risk of the market portfolio. All of these are true.
4. Which of the following are THEORETICAL asset pricing models? CAPM, FAMA FRENCH 3. BOTH, NEITHER
5. If most stocks go down in value when inflation expectations rise, you would expect the risk premium for inflation expectations to be ________ in a multifactor model.
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