Please ensure all questions are answered.
Expected Returns - Problem 11-1 o How do you calculate expected returns during Recession, Normal and Boom economy? (page 362 - Table 11.1 (state of the economy)) Expected Returns - Problem 11-4- with percentages o How do you calculate expected returns during Bust and Boom and with percentages? (page 362 - Table 11.2) Expected Returns - Problem 11-6 with unequal probabilities - Problem 11- 6 o How do you calculate expected returns during a Bust and Boom economy where there are unequal probabilities? (pages 362-363 Table 11.3) Stock Betas - Problem 12-1 o How do you calculate the beta of a stock? Market Returns - Problem 12-2 o How do you calculate the expected return on the market? Risk-Free Rates - Problem 12-3 o How do you calculate the risk-free rate? Portfolio Betas - Problem 12-5 o How do you calculate the beta for a portfolio? Expected Returns - Problem 12-8 o How do you calculate the expected return on a stock? Performance Evaluation - Problem 13-3 o How do you calculate the Sharpe ratio for a portfolio? When is the Sharpe's ratio most appropriate? o How do you calculate the Treynor ratio for a portfolio? When is the Treynor's ratio most appropriate? o How do you calculate the Jensen's alpha for a portfolio? Briefly explain the Jensen's alpha and how it is helpful? Expected Returns - Problem 11-1 o How do you calculate expected returns during Recession, Normal and Boom economy? (page 362 - Table 11.1 (state of the economy)) Expected Returns - Problem 11-4- with percentages o How do you calculate expected returns during Bust and Boom and with percentages? (page 362 - Table 11.2) Expected Returns - Problem 11-6 with unequal probabilities - Problem 11- 6 o How do you calculate expected returns during a Bust and Boom economy where there are unequal probabilities? (pages 362-363 Table 11.3) Stock Betas - Problem 12-1 o How do you calculate the beta of a stock? Market Returns - Problem 12-2 o How do you calculate the expected return on the market? Risk-Free Rates - Problem 12-3 o How do you calculate the risk-free rate? Portfolio Betas - Problem 12-5 o How do you calculate the beta for a portfolio? Expected Returns - Problem 12-8 o How do you calculate the expected return on a stock? Performance Evaluation - Problem 13-3 o How do you calculate the Sharpe ratio for a portfolio? When is the Sharpe's ratio most appropriate? o How do you calculate the Treynor ratio for a portfolio? When is the Treynor's ratio most appropriate? o How do you calculate the Jensen's alpha for a portfolio? Briefly explain the Jensen's alpha and how it is helpful
