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Author Question: In the Capital Asset Pricing Model (CAPM), beta measures (Read 229 times)

Marty

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on: Apr 25, 2021

Question 1

If Acme Dynamite stock has a beta of .8 and a standard deviation of 15% and Splat Paintball stock has a beta of 1.3 and a standard deviation of 9%, what is the beta of a portfolio comprised of equal weights of both securities?
◦ 24%
◦ 12%
◦ 18%
◦ 1.05
◦ 2.10

Question 2

In the Capital Asset Pricing Model (CAPM), beta measures
◦ the standard deviation of a single asset.
◦ the price volatility of a single security not held in a portfolio.
◦ the degree of correlation between two securities.
◦ the historical relationship between the returns from an asset and the returns from the efficient portfolio.
◦ the firm-specific risk of an asset.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Marty on Apr 25, 2021

otokexnaru

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Marty

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

ecabral0

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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