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The betas of 4 stocks are shown in the table below: Stock Beta A 2.5 B 0.1 0.5 D -1.5 You will make an equal
The betas of 4 stocks are shown in the table below: Stock Beta A 2.5 B 0.1 0.5 D -1.5 You will make an equal investment in each stock. How would a 15% increase in the expected return on the market impact the portfolio's expected return? Increase by 9% Increase by 8% Increase by 12% Increase by 11% Increase by 15% Question 4 2 pts Microsoft has an expected return of 13.1%. The estimated beta is 1.63. The rate of return on US T-bills is 1.5% and the market rate of return is 8.2%. Which of the following statement is correct? Based on the CAPM, the expected return of Microsoft is 13.1% Microsoft is currently overpriced by the market The return of Microsoft stock will graph above the security market line Microsoft stock is correctly priced None of the options The betas of 4 stocks are shown in the table below: Stock Beta A 2.5 B 0.1 0.5 D -1.5 You will make an equal investment in each stock. How would a 15% increase in the expected return on the market impact the portfolio's expected return? Increase by 9% Increase by 8% Increase by 12% Increase by 11% Increase by 15% Question 4 2 pts Microsoft has an expected return of 13.1%. The estimated beta is 1.63. The rate of return on US T-bills is 1.5% and the market rate of return is 8.2%. Which of the following statement is correct? Based on the CAPM, the expected return of Microsoft is 13.1% Microsoft is currently overpriced by the market The return of Microsoft stock will graph above the security market line Microsoft stock is correctly priced None of the options
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