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QUESTION 25 The standard deviation of a firm's returns is 4.396. The standard deviation of the market's returns is 5.1%. The returns of the firm
QUESTION 25 The standard deviation of a firm's returns is 4.396. The standard deviation of the market's returns is 5.1%. The returns of the firm are closely related to the returns on the market, with a correlation coefficient of.76. What is the firm's beta? O 1.2 3.6 0.94 1.35 none of these QUESTION 26 Investors require an 9.54896 return on a stock. If the risk-free rate is 1.196 and the market risk premium is 6.496, what is the beta according to the CAPM? 0 .96 01.02 1.32 1.11 none of these QUESTION 27 Expected returns and standard deviations have been calculated for five projects. Rank them in terms of total risk, from highest risk to lowest risk. Project E(R) 5.9% 12.396 8.496 14.996 16.296 std. deviation 1.896 2.596 2.396 2.996 3.396 DACBE AEDCB EDBCA OACEBD O none of these
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