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muiltiple choice question a. 1. Consider a risky asset that has a standard deviation of returns of 15. Calculate the correlation between the risky asset
muiltiple choice question
a. 1. Consider a risky asset that has a standard deviation of returns of 15. Calculate the correlation between the risky asset and a risk-free asset. 1.0 b. 0.0 -1.0 d. 0.5 -0.5 c. e. a. 2. Technical analysis differs from fundamental analysis in that technical analysts contend that in-depth assessments of basic aggregate market, industry, and company performance is necessary; past price movements indicate future price movements. b. technical analysts believe the market value of common stocks is determined by the interaction of supply and demand. technical analysts argue that the market constantly weighs rational and irrational factors and that both of these affect price. d. technical analysts depend far more heavily on objective, data-based approaches than the fundamentalists do. technical analysts hold that the price of a security is determined by an expected return risk. C. e. a. 3. Calculate the required return for DEX Services, which has a beta of 1.5 when the risk-free rate is 5% and you expect the market return to be 11%. 10.6 percent b. 12.1 percent 13.6 percent d. 14.0 percent 16.2 percent c. eStep by Step Solution
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