This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is the correct interpretation of the slope of the characteristic line? (Read 46 times)

fagboi

  • Hero Member
  • *****
  • Posts: 535

Question 1

Warren has a portfolio with three stocks as shown in the table. What is the beta of Warren's portfolio?

StockRequired ReturnPortfolio WeightBeta
Raymond's6.75%0.40.50
Keller Industries11.43%0.351.50
Huron Power9.27%0.251.05

◦ 0.775
◦ 0.988
◦ 1.017
◦ 1.340
◦ 1.505

Question 2

Which of the following is the correct interpretation of the slope of the characteristic line?
◦ The return on the stock when the market return is zero.
◦ The change in the return on the stock when the market return changes by 1.
◦ The return on the stock when the market return is 1%.
◦ The change in the market return per unit change of the stock return.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by fagboi on Apr 25, 2021

covalentbond

  • Sr. Member
  • ****
  • Posts: 336
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.
Answer Preview
Only 39% of students answer this correctly




fagboi

  • Member
  • Posts: 535
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


bigsis44

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

For a complete list of videos, visit our video library