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Author Question: In the Capital Asset Pricing Model (CAPM), beta measures (Read 226 times)

Marty

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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.


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Marked as best answer by Marty on Apr 25, 2021

otokexnaru

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Marty

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


connor417

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Reply 3 on: Yesterday
Gracias!

 

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