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Astack has a bera of 0.5. The market risk premium is 6% pa and the risk free rate is 2% pa, both given as effective

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Astack has a bera of 0.5. The market risk premium is 6% pa and the risk free rate is 2% pa, both given as effective and rates, Which of the below statements is NOT correct? Selection The market portfolio's total required return is 8% pa. The stock's required total return is 5% pa and this is also its expected total future return if it's fairly priced. Gall the market portfolio suddenly fell by 1% in the last 5 minutes, then the stock's price would be expected to fall by 0.5% over that Same short time. dll the market portfolio's total return was 10% over the last year, the stocks total historical return is expected to be 5% over the same one year period. Next page

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