Question
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.
Consider the following information about expected returns for twosecurities,RavenwoodConsultingand Brody Enterprises.
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