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Author Question: The equilibrium expected return on an asset is 14%, the risk-free rate is 4% and the return on the ... (Read 79 times)

V@ndy87

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on: Apr 25, 2021

Question 1

The company that prints unemployment insurance checks is named Countercyclical Printing, Inc. Countercyclical Printing's beta is -0.75, the risk free rate is 8%, and the risk premium on the market is 7%. What is the equilibrium expected rate of return on Countercyclical Printing's stock?
◦ -8.75%
◦ -3.25%
◦ 2.75%
◦ 4.50%
◦ 5.25%

Question 2

The equilibrium expected return on an asset is 14%, the risk-free rate is 4% and the return on the market portfolio is 12%. What is the beta of the asset?
◦ 1.10
◦ 1.15
◦ 1.20
◦ 1.25
◦ 1.30
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Marked as best answer by V@ndy87 on Apr 25, 2021

kristenb95

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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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V@ndy87

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

blakcmamba

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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