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Author Question: Stock A has a beta of 1.2 and a standard deviation of returns of 14. Stock B has a beta of 1.8 and a ... (Read 107 times)

londonang

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Stock A has a beta of 1.2 and a standard deviation of returns of 14. Stock B has a beta of 1.8 and a
  standard deviation of returns of 18. If the risk-free rate of return increases and the market risk
  premium remains constant, then
 
  A) the required returns on stocks A and B will both increase by the same amount.
  B) the required return on stock B will increase more than the required return on stock A.
  C) the required return on stock A will increase more than the required return on stock B.
  D) the required returns on stocks A and B will not change.

Question 2

One bank offers you 4 interest compounded semiannually. What would the equivalent rate be if
  interest were compounded quarterly?
 
  A) 3.98 B) 1.00 C) 3.96 D) 3.92


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mjbamaung

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londonang

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)


cici

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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