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3 0/1 point You have a portfolio with $200 invested in Alphabet and $800 invested in Tesla. Alphabet has an expected return of 12%
3 0/1 point You have a portfolio with $200 invested in Alphabet and $800 invested in Tesla. Alphabet has an expected return of 12% and a standard deviation of 20%. Tesla has an expected return of 16% and standard deviation of 25%. The correlation between the returns of the two stocks is 0.87. What's the standard deviation of the portfolio? Answer in percentage with 2 decimals. x 27.55 4 0/1 point What is the expected annual return of a share of Amazon Inc? Assume that the CAPM holds, that the risk-free rate is 3% per year, that the market portfolio has a return of 10% per year, and that Amazon's stock has a beta of 1.34. Answer in percentage with 2 decimals. 96.8 6 0/1 point How much would an investor expect to pay for a $1,000 corporate bond with a 8% annual coupon that matures in 12 years? Assume that the CAPM holds, that the bond has a beta of 0.24, that the risk-free rate is 3% per year and that the market portfolio has a return of 10%. Answer in dollars with 2 decimals. 1,444.81 12 0/1 point You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year forever. However, you recognize that those cash flows are uncertain. Suppose that you believe that the beta of the firm is 0.4. How much is the firm worth if the risk-free rate is 3 percent and the expected rate of return on the market portfolio is 10 percent? Answer in dollars with 2 decimals. 250,000,000.00
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