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if someone can please answer these questions for me it would be much apreciated. thank you so much. 1) What are some examples of diversifiable
if someone can please answer these questions for me it would be much apreciated. thank you so much.
1) What are some examples of diversifiable risks? In other words, name some risks specific to individual companies that do not affect the stock market as a whole. 2) Assume you create a stock portfolio with the below weights and expected returns. What is the portfolio's expected return? 3) Assume stocks 1, 2, and 3 from above each has a standard deviation of 10%. Would you expect the standard deviation of the portfolio to have a standard deviation less than, equal to, or more than 10%. Why? 4) Name an asset or industry that might have a zero or negative beta. Explain your answer. 5) A stock has a beta of 1.2. The risk-free rate is 2%. The expected return of the whole stock market is 12%. Using the CAPM, what is the expected return of the stock Step by Step Solution
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