Again 55..minutes! Thanks

1.If you bought 1000 shares of stock for $62 a share and sold them for $83 a share, what would be your dollar return? (Points : 20)

$21,000 $22,000 $20,000 $23,000

Question 2.2.Assume you have a portfolio of two assets worth a total of $110,000. Asset Y is worth $40,000 and is expected to generate a return of 15%. Asset Z is worth $70,000 and is expected to generate a return of 21%. What is the expected return of the portfolio? (Points : 20)

17.3% 18.9% 19.0% 19.6%

Question 3.3.The security market line (SML) is the graphical representation of the ________. (Points : 20)

BETA MACP CAPM ATBE

Question 4.4.Pick the beta corresponding to the level of risk on the horizontal axis and extend a line until you touch the SML. At this point, make a 90-degree angle to the left and extend a line until it intersects the vertical axis. This intersection is the ________. (Points : 20)

projected return expected return actual return required return

Question 5.5.Assume the current T-bill rate is 4% and the market return is 12%. What is the expected return on a stock with a beta of 1.2? (Points : 20)

13.6% 12.4% 14.2% 16.3%