Asset Expected Return Beta Stock A 9 0.9 Stock B 11 1.4 ...

[frankwu]

Asset Expected Return Beta
  Stock A 9 0.9
  Stock B 11 1.4
  Risk-Free Asset 5
 
  Consider the assets outlined in the table above. Which asset offers the best risk-return trade-off?
 
  A) Stock A
  B) Stock B
  C) The risk-free asset
  D) Either Stock A or Stock B as both have the same risk-return trade-off

Question 2

You have a 5-year amortized loan with a nominal rate of 11 and annual payments of 541.14. What is the original (time 0 ) principal of the loan?
 
  A) 2,000.00
  B) 2,705.70
  C) 2,289.31
  D) 1,678.86
  E) 2,051.35

[mjbamaung]

Answer to Question 1

A

Answer to Question 2

A

[frankwu]

TYSM

[samiel-sayed]

Thanks for the timely response, appreciate it