Question
Can you answer the questions below? Question 1 Momentum is an anomaly that gives those subscribing in efficient markets the most trouble. What is Momentum
Can you answer the questions below?
Question 1
Momentum is an anomaly that gives those subscribing in efficient markets the most trouble. What is Momentum in stock prices? Why is this a problem for the efficient market hypothesis?
Question 2
Stock ABC has a beta of 1.4 and the standard deviation of its returns is 30%.The market risk premium is 5% and the risk-free rate is 3%.
1.What is the expected return for the stock?
2.What are the expected return and standard deviation for a portfolio that is equally invested in the stock and the risk-free asset?
If you forecast that next year stock ABC will have return of 10%.Would you buy it?Why or why not?
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