Question 6 ~ 10

If you want to mitigate the future losses when you have a short position, you order stop buy order forwards order futures short order stop sell order What is the expected return on a stock with a beta of 1.09, a market risk premium of 8%, and a risk-free rate of 4% ? 8.72\% 12.72% 8.36% 4.36% A portfolio consists of one risky asset and one risk-free asset. The risky asset has an expected return of 13.2 percent and a beta of 1.43. The risk-free asset has an expected return of 3.8 percent. How much of the portfolio is invested in the risk-free asset if the portfolio beta is 1.06 ? 34 percent 74 percent 26 percent 42 percent A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is 4.3% 9.3\%. 0.5% 7.9\%. A \$1,000 par value, 5\% annual coupon bond matures in 4 years. The bond is currently priced at $965.35 and has a YTM of 6.0%. What is the Macaulay duration? 4.00 years 3.72 years .43 years 2.81 years