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pls don't do interim rounding,calculate values to 6 decimal places before converting to percentages, state the answer to two places, do not use labels (%,

pls don't do interim rounding,calculate values to 6 decimal places before converting to percentages, state the answer to two places, do not use labels (%, $). For example, if the value is 0.06458, the answer is 6.46.

1.

Given the choice between two assets with standard deviations of 15.30% each,a returnfor asset A of 10.80%and a returnfor asset B of 9.40%, a rational investor would choose:

A.asset B.

B.asset A.

C.either asset.

2.

K.J. Lee,CFA,an analyst with Water's Edge Securities,estimates the market risk premium is 6.30% and the risk-free rate is 1.15%. She's calculated the beta for Summerfield Tech as 0.68, and she estimates the expected return is:

3.

Monroe McIntyre has estimated the expected return for BruehlIndustries to be 10.50%. He notes the risk-free rate is 2.10% and the return of the market is 11.40%. Based on this information, he estimates Bruehl's beta to be:

A.0.74.

B.1.13.

C.0.90.

4.

Riley Stein estimates the expectedreturns forCromartyLTD and TindallCos to be 12.3% and 5.2% respectively. She wants to build a portfolio with an expected return of 9.50%. The weight of Cromarty in the portfolio should be:

5.

Petter Jansen purchased100 shares each inSygnetteand Joey Stores a year ago. He paid $25.73 and $32.55 per share respectively. He sold Sygnette today for $27.30. Hereceived a dividend fromJoey Stores of $2.35 and alsosoldthe stock today for $31.95 per share.Petter's return for the portfolio is:

6.

Assume the Capital Asset Pricing Model is true and that all securities should lie along the line created by the equation (the Security Market Line).

Greg Noronhahas been told the expected return on Merchants Bank is 8.80%, He knows the risk-free rate is 1.07%, the market risk premium is 6.75%, and Merchants' beta is 1.15. Based on the Capital Asset Pricing Model, Merchants Bank is:

A.fairly valued.

B.undervalued.

C.overvalued.

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