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Author Question: If Geek Computer has a beta of 1.1, the return from Treasury bills is 3 and the return from the ... (Read 123 times)

arivle123

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on: Jul 10, 2018
If Geek Computer has a beta of 1.1, the return from Treasury bills is 3 and the return from the market portfolio is 20, what is the required return from Geek stock?
 
  A) 20.0
  B) 22.8
  C) 15.7
  D) 18.7
  E) 21.7

Question 2

For purposes of maximum portfolio diversification, which of the following would provide the greatest diversification?
 
  A) Security A with a correlation coefficient of -0.0
  B) Security B with a correlation coefficient of 0.0
  C) Security C with a correlation coefficient of -0.50
  D) Security D with a correlation coefficient of 0.50


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anyusername12131

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Reply #1 on: Jul 10, 2018
Answer to Question 1

E

Answer to Question 2

Answer: C


arivle123

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Reply 2 on: Jul 10, 2018
Excellent

ryansturges

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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