This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. ... (Read 63 times)

karlynnae

  • Hero Member
  • *****
  • Posts: 599
on: Jul 10, 2018
You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. The table presents data that you have collected on four stocks that look promising.
 
  You have calculated the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? (Assume you must choose just one.) Assume the risk-free rate is 7.00 and the market risk premium is 2.00.
 
  Stock Anticipated Return Beta
  A 9.01 1.70
  B 7.06 0.00
  C 8.74 0.87
  D 11.50 2.50
 
  A) Stock A
  B) Stock B
  C) Stock C
  D) Stock D

Question 2

The price/earnings ratio:
 
  A) Is calculated by multiplying the market price of a stock by its earnings per share.
  B) Is found by dividing the market price of a stock by the firm's total earnings.
  C) Is computed by dividing the book value of a stock by the firm's EPS.
  D) Is calculated by adding the market price of a stock to the firm's EPS.
  E) Is found by dividing the market price of a stock by the firm's EPS.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dawsa925

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

E


karlynnae

  • Member
  • Posts: 599
Reply 2 on: Jul 10, 2018
:D TYSM

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

A chuckwalla, Sauromalus ater. Chuckwallas are large herbivorous lizards living in the southwestern A chuckwalla, Sauromalus ater. Chuckwallas are large herbivorous lizards living in the southwestern
Albatrosses, of the biological family Diomedeidae, are large seabirds Albatrosses, of the biological family Diomedeidae, are large seabirds
The Wall The Wall
GI endoscopy. (a) Similar to other forms of GI endoscopy, laparoscopy involves the insertion of a sp GI endoscopy. (a) Similar to other forms of GI endoscopy, laparoscopy involves the insertion of a sp
Thomas Coram, View of Mulberry House and Street. Thomas Coram, View of Mulberry House and Street.
Large water tank, possibly a public or ritual bathing area, from Mohenjo-daro, Indus Valley ... Large water tank, possibly a public or ritual bathing area, from Mohenjo-daro, Indus Valley ...
Video: Covalent bonds - role in the body

For a complete list of videos, visit our video library