please do all parts of Q.1 in 40 minutes please urgently... I'll give you up thumb definitely

please do A,B and C part of Q .1 only in 30 minutes please

10 11 Q1 12 13 14 15 E[r] 16 17 18 19 E[r] 20 10% 21 5% 22 -1% 23 w(rf) 24 25 26 27 w(rf) 28 29 30 31 32 33 0 34 beta alpha 35 1.0 36 ii 2.0 37 38 Q2 a Coeff. Std. Err. 39 alpha 40 beta R-squared 41 42 b % idio 43 44 03 a 0.70 beta(1) beta(2) 45 1.50 46 firm beta 47 b beta(1) 0.80 48 beta(2) 49 firm beta 1.00 50 beta Type correct beta in cell. 51 52 Type the number corresponding to the correct answer in the yellow box! 53 04 If the CAPM holds, which of the following statements is true? 54 1 The betas of all assets are non-negative 55 2 The alphas of all assets are zero 56 3 The expected returns of all assets are greater than the risk-free rate 57 4 The R-squareds of security characteristic line (SCL) regressions for all assets are 100% 58 5 There are many different portfolios of just risky assets (no position in the risk-free asset) that are efficient Answer 59 60 61 62 63 64 65 66 67 68 69 70 71 a add any ToWS rf b d e rM SD[rM] i ii iii T ii iii i ii i ii iii PO P1 D1 i 2% 6% 20% beta 1.4 0.6 -0.2 beta r 4% 5% 7% sd[r] 6% 15% 21% 50 53 w(rM) w(rM) Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Excess return MMM 10.38% -1.54% 0.33% 2.75% 1.87% 5.52% 1.37% 3.97% -2.34% 0.50% -8.13% -4.14% -10.55% 10.07% 3.28% 0.85% 6.09% 1.71% 1.84% 0.17% -4.90% 6.15% 1.82% 2.14% -0.20% -5.23% 4.50% 2.08% 8.29% 4.07% 4.01% 1.03% 5.91% -0.83% 7.39% -2.74% 5.13% 5.39% 6.61% 5.05% -5.60% 5.79% 0.69% 2.53% 3.11% 0.48% -1.64% 2.81% 0.05% 4.27% 4.67% 2.64% -1.23% 4.56% -2.19% -3.26% 2.36% -3.00% -1.92% -5.42% US Mkt 9.05% 3.87% -0.12% 6.65% 2.41% 3.19% 0.07% 2.99% -1.19% -1.65% -1.95% -5.50% -6.98% 11.25% -0.38% 0.95% 4.59% 4.25% 3.30% -0.55% -6.05% 4.17% 1.49% 2.16% 2.52% -1.74% 0.40% 0.76% 5.29% 1.22% 3.78% 2.04% 2.25% -1.36% 5.13% -2.99% 3.17% 4.67% 3.01% 2.47% -3.39% 4.48% 0.82% 0.75% 2.26% 2.06% -1.35% 3.92% -1.38% 2.47% 2.67% -0.24% -2.88% 5.60% -1.54% 0.95% 1.18% -1.92% 2.20% -6.09% Download the Excel spreadsheet "Problem Set #3" from the Assignments tab in the NYU LMS (Brightspace). Please put your name and NetID in the blue boxes at the top of the worksheet (my name is currently there). The spreadsheet contains the input data for each problem (as described below) and shaded yellow cells for you to enter your answers. Once completed, upload the file via the Assignments tab in the NYU LMS (Brightspace). Because your solutions will be computer-graded it is very important to follow the instructions: Please do NOT reformat the file or move the yellow cells. Do NOT add rows or columns to the worksheet. However, you can add additional calculations in non-highlighted cells if you wish. Everything in non-highlighted cells will be ignored for grading purposes. You can either enter the formula to calculate your answer in the yellow cells, or enter these formulas elsewhere and just put references to these answers in the yellow cells. Please do NOT round your answers or intermediate calculations. Excel will display rounded answers based on the formatting of the cells, but it will retain the unrounded numbers. Please do NOT add a new worksheet to the file. Do all of your calculations in the "Results" worksheet and submit a file with only a single worksheet. 1. Assume the risk-free rate is 2% (rr = 2%), the expected (total) return on the market portfolio is 6% (TM = 6%) and the standard deviation of the return on the market portfolio is 20% (OM = 20%). (All numbers are annual.) Assume the CAPM holds. a. What are the expected (total) returns on securities with the following betas: (1 point each) (i) B = 1.4 (ii) B = 0.6 (iii) B = -0.2 b. What are the betas of securities with the following expected (total) returns: (1 point each) (i) 10% (ii) 5% (iii) -1% c. What are the portfolio weights (in the risk-free asset and the market portfolio) for efficient portfolios (portfolios on the efficient frontier/CML) with the following expected (total) returns: (1 point each) (i) 4% (ii) 5% (iii) 7% 1 d. What are the portfolio weights (in the risk-free asset and the market portfolio) for efficient portfolios (portfolios on the efficient frontier/CML) with the following standard deviations: (1 point each) (i) 6% (ii) 15% (iii) 21% e. For a moment (but just a moment) assume that the CAPM may not hold. A non-dividend paying stock has a current price of $50/share and an expected price in 1 year of $53/share (based on your personal analysis of the company's prospects). (1 point each) (i) If the stock has a beta of 1 (= 1.0), what is its alpha (a)? (ii) What is the alpha (a) if the beta is 2 ( = 2.0)? 10 11 Q1 12 13 14 15 E[r] 16 17 18 19 E[r] 20 10% 21 5% 22 -1% 23 w(rf) 24 25 26 27 w(rf) 28 29 30 31 32 33 0 34 beta alpha 35 1.0 36 ii 2.0 37 38 Q2 a Coeff. Std. Err. 39 alpha 40 beta R-squared 41 42 b % idio 43 44 03 a 0.70 beta(1) beta(2) 45 1.50 46 firm beta 47 b beta(1) 0.80 48 beta(2) 49 firm beta 1.00 50 beta Type correct beta in cell. 51 52 Type the number corresponding to the correct answer in the yellow box! 53 04 If the CAPM holds, which of the following statements is true? 54 1 The betas of all assets are non-negative 55 2 The alphas of all assets are zero 56 3 The expected returns of all assets are greater than the risk-free rate 57 4 The R-squareds of security characteristic line (SCL) regressions for all assets are 100% 58 5 There are many different portfolios of just risky assets (no position in the risk-free asset) that are efficient Answer 59 60 61 62 63 64 65 66 67 68 69 70 71 a add any ToWS rf b d e rM SD[rM] i ii iii T ii iii i ii i ii iii PO P1 D1 i 2% 6% 20% beta 1.4 0.6 -0.2 beta r 4% 5% 7% sd[r] 6% 15% 21% 50 53 w(rM) w(rM) Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Excess return MMM 10.38% -1.54% 0.33% 2.75% 1.87% 5.52% 1.37% 3.97% -2.34% 0.50% -8.13% -4.14% -10.55% 10.07% 3.28% 0.85% 6.09% 1.71% 1.84% 0.17% -4.90% 6.15% 1.82% 2.14% -0.20% -5.23% 4.50% 2.08% 8.29% 4.07% 4.01% 1.03% 5.91% -0.83% 7.39% -2.74% 5.13% 5.39% 6.61% 5.05% -5.60% 5.79% 0.69% 2.53% 3.11% 0.48% -1.64% 2.81% 0.05% 4.27% 4.67% 2.64% -1.23% 4.56% -2.19% -3.26% 2.36% -3.00% -1.92% -5.42% US Mkt 9.05% 3.87% -0.12% 6.65% 2.41% 3.19% 0.07% 2.99% -1.19% -1.65% -1.95% -5.50% -6.98% 11.25% -0.38% 0.95% 4.59% 4.25% 3.30% -0.55% -6.05% 4.17% 1.49% 2.16% 2.52% -1.74% 0.40% 0.76% 5.29% 1.22% 3.78% 2.04% 2.25% -1.36% 5.13% -2.99% 3.17% 4.67% 3.01% 2.47% -3.39% 4.48% 0.82% 0.75% 2.26% 2.06% -1.35% 3.92% -1.38% 2.47% 2.67% -0.24% -2.88% 5.60% -1.54% 0.95% 1.18% -1.92% 2.20% -6.09% Download the Excel spreadsheet "Problem Set #3" from the Assignments tab in the NYU LMS (Brightspace). Please put your name and NetID in the blue boxes at the top of the worksheet (my name is currently there). The spreadsheet contains the input data for each problem (as described below) and shaded yellow cells for you to enter your answers. Once completed, upload the file via the Assignments tab in the NYU LMS (Brightspace). Because your solutions will be computer-graded it is very important to follow the instructions: Please do NOT reformat the file or move the yellow cells. Do NOT add rows or columns to the worksheet. However, you can add additional calculations in non-highlighted cells if you wish. Everything in non-highlighted cells will be ignored for grading purposes. You can either enter the formula to calculate your answer in the yellow cells, or enter these formulas elsewhere and just put references to these answers in the yellow cells. Please do NOT round your answers or intermediate calculations. Excel will display rounded answers based on the formatting of the cells, but it will retain the unrounded numbers. Please do NOT add a new worksheet to the file. Do all of your calculations in the "Results" worksheet and submit a file with only a single worksheet. 1. Assume the risk-free rate is 2% (rr = 2%), the expected (total) return on the market portfolio is 6% (TM = 6%) and the standard deviation of the return on the market portfolio is 20% (OM = 20%). (All numbers are annual.) Assume the CAPM holds. a. What are the expected (total) returns on securities with the following betas: (1 point each) (i) B = 1.4 (ii) B = 0.6 (iii) B = -0.2 b. What are the betas of securities with the following expected (total) returns: (1 point each) (i) 10% (ii) 5% (iii) -1% c. What are the portfolio weights (in the risk-free asset and the market portfolio) for efficient portfolios (portfolios on the efficient frontier/CML) with the following expected (total) returns: (1 point each) (i) 4% (ii) 5% (iii) 7% 1 d. What are the portfolio weights (in the risk-free asset and the market portfolio) for efficient portfolios (portfolios on the efficient frontier/CML) with the following standard deviations: (1 point each) (i) 6% (ii) 15% (iii) 21% e. For a moment (but just a moment) assume that the CAPM may not hold. A non-dividend paying stock has a current price of $50/share and an expected price in 1 year of $53/share (based on your personal analysis of the company's prospects). (1 point each) (i) If the stock has a beta of 1 (= 1.0), what is its alpha (a)? (ii) What is the alpha (a) if the beta is 2 ( = 2.0)