Question
Given the following data for a stock: beta = 1.6; risk-free rate = 3%; market rate of return = 14%; and the actual rate of
Given the following data for a stock: beta = 1.6; risk-free rate = 3%; market rate of return = 14%; and the actual rate of return on the stock = 22%. Then the stock is:
above the Security Market Line
it cannot be determined
on the Security Market Line
below the Security Market Line
Which one of the following portfolios has the least amount of systematic risk?
a portfolio consisting of various U.S. Treasury bills
a portfolio that duplicates the overall market
a portfolio comprised of 30 percent cash and 70 percent large-company stocks
a stock portfolio with a portfolio beta of 2.2
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
