Consider the following information. What is the expected of this portfolio in a BUST if it is an equally weighted portfolio of these three 9% 9.5% 10% 14% An outbreak of a rare brain parasite known as toxoplasmosa gondil, makes 10% of the workers dead men walking at ZAG (Zombie Apocalypse Gaming) in Gorod Krovi. Russia foe an extended time. well, forever if you really need the gory details. The ZAG stock is negatively impacted due to a significant decline in its production and the added cost of zombie surveillance and control. This is an example of: Unsystematic risk Systematic risk Overreaction hypothesis Clientele effect You own a 3 stock portfolio equally in a risk free asset (called Snap, which has a beta of zero) and two other stocks: Crackle and pop, Crackle has a beta of 1.8. The total portfolio is equally as risky as the market (that is, your portfolio beta is 1.0) What must be the beta of pop? 7 14 12 1.9 percent. Using CAPM, greaterthanorequalto has a beta of 1.3, the risk free rate is 1 percent, and the market risk premium is 5.2 percent. What must be GE's cost of equality? 6.59 7.76 8.65 9.87. The security market line is a linear function which is graphed by plotting data points based on the relationship between which two of the following variables on the vertical and horizontal axes? Variance and standard deviation Beta and Beta-squared The Risk-free rate and Covariance Expected return and beta If the market's expected return is 8.8%, the risk free rate is 22%, and beta of the stock is 12, the expected return of the stock is:= 8.8% 11.0% 10.12%. 11.45% A stock is expected to return 13 percent in an economic boom. 10 percent in a normal economy, and 3 percent in a recessionary economy. Which one of the following will raise the overall expected rate of return on this stock? An increase in the probability of an economic boom A decrease in the probability of a recession occurring. A higher expected rate of return in an economic boom. All of the above