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Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below: Price per Stock Number of Shares

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Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below: Price per Stock Number of Shares Outstanding (Millions) 25 Share $15.60 $13.00 $29.25 $26.25 Taggart Transcontinental Rearden Metal Wyatt Oil Nielson Motors 45 10 26 Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal. The amount that you have invested in Taggart Transcontinental is closest to: $9000 Correct Answer $6000. $4500. $7715. Use the following information to answer the question(s) below. Beta Volatility 20% 0.45 "Eenie" "Meenie" 0.75 18% "Miney" 1.05 35% "Moe" 1.20 25% Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%. The risk premium for "Meenie" is closest to: 4.50%. 9.30%. 7.50%. 9.75%

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