Question
According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 2.9% and the market risk premium is 7.4%.
According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 2.9% and the market risk premium is 7.4%. Given this news, in the table below, the only stock that is correctly priced is:
Stock | Beta | Expected Return | ||||
A | .75 | 8.45 | % | |||
B | 1.45 | 14.30 | ||||
C | 1.26 | 11.18 | ||||
D | 1.42 | 13.56 | ||||
E | .95 | 8.65 | ||||
Multiple Choice
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Stock A
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Stock E
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Stock B
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Stock D
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Stock C
Dan Conway invested his life savings in cryptocurrencies in 2016. Since then, that investment has earned an average return of 10.11%. What is the range of Dan Conways returns with a 68% probability, if his investment exhibits a standard deviation of 19.02%?
Multiple Choice
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46.95% to 67.17%
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8.91% to 29.13%
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8.91% to 11.31%
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18.42% to 38.64%
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27.93% to 48.15%
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