Question
A) When an asset's return lies below the Security Market Line, it is cheaper than its CAPM price costlier than its CAPM price Not
A) "When an asset's return lies below the Security Market Line, it is "
| cheaper than its CAPM price | ||
| costlier than its CAPM price | ||
| Not possible to decide without more data |
B) Hindelberg Corp. has a beta of 2 and standard deviation of 25%. The market portfolio has a standard deviation of 10%. What ratio of Hindelberg s total risk is due to market risk?
| 64% | ||
| 48% | ||
| 32% | ||
| 16% |
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
