Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given that the risk-free rate is 5% and the expected return on the market portfolio is 10%, if bush company's beta is 2, what is

Given that the risk-free rate is 5% and the expected return on the market portfolio is 10%, if bush company's beta is 2, what is Dow's expected return?
A. 18%
B. 21%
C. 10%
D. 15%
What is the best measure of risk for an asset that is to be held in isolation (one stock portfolio)?
A. market risk
B. Beta
C. Diversifiable risk
D. Standard deviation
Which is the best measure of risk for choosing an asset which is to be held in isolation? Which is the best measure for choosing an asset to be held as part of a diversified portfolio?
A. standard deviation; beta
B. variance; correlation coefficient
C. standard deviation; correlation coefficiant
D. beta; beta

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research In Finance

Authors: John W. Kensinger

1st Edition

0857245414, 978-0857245410

More Books

Students also viewed these Finance questions

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago