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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 (%,

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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 (%, $). 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.

image text in transcribedimage text in transcribedimage text in transcribed
Do not do any interim rounding, calculate the answer to six decimal places before converting to a percentage, state your answer as a percentage rounded to two places. For example, if the value is .095763 to six places, the answer would be 9.58. Do not use labels (%, $) the market? Based on the Capital Asset Pricing Model assuming the securities are correctly priced and given the following information, what is the return on Security Beta Expected Return Katmai Outfitters 0.74 0.087 Wrangell Adventures 1.63 0.159

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