Question
I need help answering these questions: The risk free rate is 4%, and the required return on the market is 12%. What is the required
I need help answering these questions:
The risk free rate is 4%, and the required return on the market is 12%.
What is the required return on an asset with a beta of 1.5?
What is the reward/risk ratio?
What is the required return on a portfolio consisting of 40% of the asset above and the rest in an asset with an average amount of systematic risk?
Your stock investments return 8%, 12%, and -4% in consecutive years. What is the geometric return?
What is the sample standard deviation of the above returns?
Using the standard deviation and mean that you just calculated, and assuming a normal probability distribution, what is the probability of losing 3% or more?
Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and required payback is 4 years.
What is the payback period?
What is the discounted payback period?
What is the NPV?
What is the IRR?
Should we accept the project?
What decision rule should be the primary decision method?
When is the IRR rule unreliable?
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