(Expected rate of return and risk) Carter Inc, is evaluating a security. Given the information in the popup window, calculate the investment's expected return and its standard deviation. a. The investment's expected rate of return is \%. (Round to two decimal places) Data table (Click on the following icon n in order to copy its contents into a speadshnot) (Expected rate of retum and risk) Summervile inc. is considering an investment in one of two common stocks. Given the information in the popup window: which investment is better, based on the risk (as measured by the standard deviation) and return of each? a. The expected rate of return for Slock A is W. (Round to two decimal places) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) percent, and the oxpected retum for the market is 10.5 percent. What should be the required rate of retum for each investment (Using the CAPM)? a. Using the CAPM, the required rate of refum for security A A s (Round to two decimal placen) Data table (Cick on the following icon 0 in order to copy its contents into a spreadeheet) (Capital asset pricing model) MFI Inc. has a beta of 1.13. If the expected market return is 11.0 percent and the risk-free rate is 6.0 percent, what is the appropriate required return of MFl (using the CAPM)? Using the CAPM, the appropriate required retum of MFT is (Round to two decimal places.) (Capital asset pricing modef) The expected retum for the general market is 15.5 percent, and the risk premium in the market is 7.8 porcent: Tasaco, L8M, and Excos have betas of 0.843,0.617, and 0.528, respectively. What are the corresponding required rates of return for the three securities? a. Using the CAPM, the corresponding required rate of rotum for Tasaco is St. (Round to two decimal places ) (Standard deviation) Given the probabilities and retums for Mik's Corporation in the popup window, ifin, find the standard deviation. Mik's standard deviation is Data table (Click on the following icon 0 in order to copy its contents into a spreadsheet) (Portfolio beta) Assume you have the following portfolio: What is the portfolio's beta? The portfolio's beta is (Round to two decimal placess.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) (Holding-period dollar gain and retum) Suppose you purchased 18 stares of Diamond Company shock for $27.56 per share on May 1,2016, On September 1 of the same year, you sold 14 shares of the slock for $2322. Caloulate the holding-period dollar gain for the shares you sold, assuming no dividend was distributed, and the holding-period rate of return a. The holding-period dollar gain for the shares you sold is 1 Enter a negative number if it is a loss. (Rouind to tho nearest cent.)
