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Author Question: The S&P 500 Bear Plus ETF seeks daily investment results such that its Beta is equal -2. The risk ... (Read 59 times)

biggirl4568

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Question 1

The risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent. What is the beta of Security J?
◦ 0.5
◦ 1.0
◦ 1.5
◦ 2.0
◦ 2.5

Question 2

The S&P 500 Bear Plus ETF seeks daily investment results such that its Beta is equal -2. The risk free rate is 3.5% and the market risk premium is 6%. What is the equilibrium expected rate of return on the ETF?
◦ -19%
◦ -8.5%
◦ -2.5%
◦ 0%
◦ 3.5%


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Marked as best answer by biggirl4568 on Apr 25, 2021

lkanara2

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biggirl4568

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Reply 2 on: Apr 25, 2021
Excellent


juliaf

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

 

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