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Finance and investment questions all multiple choice but 1 questions. Only 7 questions to answer. I need it done in 30 minutes. Thank You A.
Finance and investment questions all multiple choice but 1 questions. Only 7 questions to answer. I need it done in 30 minutes.
Thank You
A. To construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of ________. -1 1 .5 -.5 B. A project has a 60% chance of doubling your investment in 1 year from $100 to $200 and a 40% chance of losing half your money from $100 to $50. Which answer is closest to the standard deviation of this investment? 50% 23% 73% 62% C. Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is the expected return on a stock with a beta of 1.3? 6% 15.6% 18% 21.6% D. Describe in your own words what portfolio theory is, and why it might be helpful in developing your investment strategy. E. The expected rate of return of a portfolio of risky securities is _________. The The The The sum of the securities variance sum of the securities covariance's weighted sum of the securities expected returns weighted sum of the securities variance F. An investor's degree of risk aversion will determine his or her ______. Optimal risky portfolio Optimal mix of the risk-free asset and risky asset Risk free rate Capital allocation line Risk that can be eliminated through diversification is called ______ risk. Unique Firm-specific Diversifiable All of the aboveStep by Step Solution
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