please answer question 18 and 14
5 ExamView - BA 352 HW 3 X Erkenci Kus - Episode 10 | X E BA 3352, HW 2 - Google | X In Exam 2 X C Search Textbook Solution X My Drive - Google Drive X + X C moodle.pacificu.edu/mod/quiz/attempt.php?attempt=859116&cmid=656384 OF ROAR Update Apps In Login - CAS - Centr... Cloudload - Store a... My Print Center My Meetings - Zoom LEAN Free Workout Guid... 2019 Instruction 10... Link Ninja Il. each risky asset its out of Ill. any portfolios lag question Select one: O a. II, III O b. I, II, III O c. ll only O d. I only O e. Ill only Clear my choice stion 14 The beta value of the common stock of DYP Company is 0.85. The nominal risk-free rate is 3.25%; and the market risk premium is 6.50%. What is the estimate of the required rate of return of the common stock? yet vered Select one: ts out of O a. 9.25% lag question b. 16.94% O c. 8.78% O d. 13.25% O e. 14.99% stion 15 It is usually assumed that there exits a risk-free asset such that risk-averse investors may borrow or lend unlimited amounts at the risk-free rate. Note that borrowing at the risk-free rate is analogous to selling short the risk-fi yet 1. The Capital Market Line (CML) is the computational drudgery that belongs to multiple programming solutions that are applied to the risk-free rate and the market portfolio. vered E(R.) - Ry ts out of Il. The slope of the CML is ag question Ill. All portfolios that lie on the CML to the right of . can be reached to borrow at the risk-free rate in order to invest more than 100% in the market portfolio. O 99+ 188 9:09 AM 12/7/20205 ExamView - BA 352 HW 3 X Erkenci Kus - Episode 10 | X E BA 3352, HW 2 - Google [ X In Exam 2 X C Search Textbook Solution X My Drive - Google Drive X + X C moodle.pacificu.edu/mod/quiz/attempt.php?attempt=859116&cmid=656384 OF ROAD Update Apps In Login - CAS - Centr... Cloudload - Store a... My Print Center My Meetings - Zoom LEAN Free Workout Guid... 2019 Instruction 10... Link Ninja Select one: O a. True O b. False Clear my choice stion 18 Assume that there is a two-stock portfolio with $40,000 invested in Stock HT and $60,000 invested in Stock Coll. Furthermore, the following information is given: vet Year HT Coll wered 2008 -12% -8% its out of 2009 -5% 2% 2010 5% 5% Flag question 2011 2% 7% 2012 10% 5% 2013 25% 2% 2014 10% 10% 2015 15% 25% What is the standard deviation of the portfolio's return? Select one: O a. 9.05% O b. 8.95% O c. 10.22% O d. 8.07% O e. 8.75% stion 19 When identifying undervalued and overvalued assets, which of the following statements is true? vet 1. An asset is considered undervalued if its expected rate of return is below its required rate of return. wered Il. An asset is considered undervalued if its expected rate of return is above its required rate of return. 99+ 188 9:09 AM 12/7/2020
