QUESTION 14 Four securities have the characteristics described in the following table: Stock A Stock B Stock C Stock D a 4% 8% 10% 6% B 2.2 1.5 0.5 0.8 el 4% 8% Use the table and a Single Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets, yven an expected market return of om Rm) and a market risk of 4m 4). What is the value of the portfolio's alpha? a. Less than 5 b. Greater than or equal to 5 but less than 6 Greater than or equal to 6 but less than 7 d. Greater than or equal to 7 but less than 8 O Greater than or equal to 8 QUESTION 15 Four securities have the characteristics described in the following table: Stock A Stock B Stock Stock D 4% 8% 10% 6% B 2.2 1.5 0.8 0.5 ei 4% 8% 4% Use the table and the Single-Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets gren an expected market return of (Rm 6M) and a market risk of 4% im 4. What is the value of the portfolio's beta? O a. Less than or equal to 0.5 b. Greater than 0.5 but less than or equal to 1 Greater than 1 but less than or equal to 15 O d. Greater than 15 but less than or equal to 2 O e Greater than 2 QUESTION 16 Four securities have the characteristics described in the following table: Stock A Stock B Stock Stock D a 8% 10% B 22 1.5 0.5 0.8 ei 4% 8% 496 29% Use the table and the Single Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets, given an expected market return of 6 Rm 6 and a market risk of im 4). What is the expected return of the portfolio? O a less than or equal to 8 b. Greater than 8 but less than or equal to 10 O Greater than 10 but less than or equal to 12 O d. Greater than 12 but less than or equal to 14 Greater than 14 QUESTION 14 Four securities have the characteristics described in the following table: Stock A Stock B Stock C Stock D a 4% 8% 10% 6% B 2.2 1.5 0.5 0.8 el 4% 8% Use the table and a Single Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets, yven an expected market return of om Rm) and a market risk of 4m 4). What is the value of the portfolio's alpha? a. Less than 5 b. Greater than or equal to 5 but less than 6 Greater than or equal to 6 but less than 7 d. Greater than or equal to 7 but less than 8 O Greater than or equal to 8 QUESTION 15 Four securities have the characteristics described in the following table: Stock A Stock B Stock Stock D 4% 8% 10% 6% B 2.2 1.5 0.8 0.5 ei 4% 8% 4% Use the table and the Single-Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets gren an expected market return of (Rm 6M) and a market risk of 4% im 4. What is the value of the portfolio's beta? O a. Less than or equal to 0.5 b. Greater than 0.5 but less than or equal to 1 Greater than 1 but less than or equal to 15 O d. Greater than 15 but less than or equal to 2 O e Greater than 2 QUESTION 16 Four securities have the characteristics described in the following table: Stock A Stock B Stock Stock D a 8% 10% B 22 1.5 0.5 0.8 ei 4% 8% 496 29% Use the table and the Single Index Model for problems 14-17 to calculate the requested values for an equally weighted portfolio made up of the four assets, given an expected market return of 6 Rm 6 and a market risk of im 4). What is the expected return of the portfolio? O a less than or equal to 8 b. Greater than 8 but less than or equal to 10 O Greater than 10 but less than or equal to 12 O d. Greater than 12 but less than or equal to 14 Greater than 14
