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 53 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
Great answer, keep it coming :)


bitingbit

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

There are more bacteria in your mouth than there are people in the world.

For a complete list of videos, visit our video library