Question
A stock has returns of 4 percent, 19 percent, -26 percent, and 16 percent for the past 4 years. Based on this information, what is
A stock has returns of 4 percent, 19 percent, -26 percent, and 16 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?
| -26.2 to 36.3 percent |
| -17.3 to 23.8 percent |
| -9.0 to 12.4 percent |
| -37.8 to 44.3 percent |
| -58.4 to 64.9 percent |
Your portfolio has a beta of 1.24. The portfolio consists of 14 percent U.S. Treasury bills, 31 percent in stock A, and 55 percent in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
| 1.10 |
| 1.41 |
| 1.30 |
| 0.55 |
| 1.69 |
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.28?
| 9.84 |
| 12.80 |
| 16.64 |
| 15.80 |
| 6.84 |
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