Author Question: If Geek Computer has a beta of 1.1, the return from Treasury bills is 3 and the return from the ... (Read 133 times)

arivle123 · **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