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

Author Question: The risk free rate is 3%. The expected rate of return on the market is 10%. Betas and the expected ... (Read 101 times)

Darron12

  • Full Member
  • ***
  • Posts: 158

Question 1

The most uncertain value used in the Capital Asset Pricing Model is
◦ beta.
◦ the risk-free rate.
◦ expected return on the market.
◦ all are equally uncertain.

Question 2

The risk free rate is 3%.  The expected rate of return on the market is 10%.  Betas and the expected rates of return for four stocks are as follows.: BWI 0.9 , 10%; ORH 1.0, 10%; ORL 1.4 , 12.6%, and DEL 1.5, 18%.  Based on a comparison of each stock's expected return versus its required return, which of these stocks should not be purchased?
◦ BWI
◦ ORH
◦ ORL
◦ DEL


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Darron12 on Mar 29, 2022

Mynameisrandom

  • Full Member
  • ***
  • Posts: 178
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 29% of students answer this correctly




Darron12

  • Member
  • Posts: 158
Reply 2 on: Mar 29, 2022
Wow, this really help


skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

For a complete list of videos, visit our video library