Please help comment on this statement: Explain how we assess the risk of a stock. Include...
Please help comment on this statement: Explain how we assess the risk of a stock. Include in your response the role that the Security Market Line plays in risk assessment.
Homework Answers
The risk is the measure which show the uncertainty of the stock price. The risk can be further classified as systematic risk and unsystematic risk.
The standard deviation is a measure which shows the total risk of the stock and beta shows the systematic risk of the stock, supposes if beta is 1.2 then it shows stock is riskier than market.
Security market line is graphical representation of the CAPM. It shows the expected rate of return as a function of the systematic risk (Beta). The stock above the SML are undervalued stock and stock below this line are overvalued stock.
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Please help comment on this statement: Explain how we assess the
risk of a stock. Include...
1. Explain how we assess the risk of a stock. Include in your response the role...
1. Explain how we assess the risk of a stock. Include in your response the role that the Security Market Line plays in risk assessment. 2. Explain the usefulness of the Security Market Line in assessing common stock risk. Explain how we use bond rating categories to assess bond risk
Help me answer this Explain the usefulness of the Security Market Line in assessing common stock...
Help me answer this Explain the usefulness of the Security Market Line in assessing common stock risk. Explain how we use bond rating categories to assess bond risk
how can health professionals assess the importance of policy information they are observing? Include the role...
how can health professionals assess the importance of policy information they are observing? Include the role of policy theory and logic models in your response.
During our assessment, we identified Hilda was at risk for malnutrition. However, we did not have...
During our assessment, we identified Hilda was at risk for malnutrition. However, we did not have any information in the case study about subcutaneous fat or muscle loss. Explain how you would assess subcutaneous fat and muscle loss in Hilda. Knowing Hilda is at risk for malnutrition, once an oral diet is resumed, what intervention steps would the doctor, nurse, and dietitian put into practice to help Hilda reach a goal of consuming >75% of meals? Please identify one intervention...
please explain. if you are unsure about your answer please do not answer question. Thank you....
please explain. if you are unsure about your answer
please do not answer question. Thank you.
Question 13 1 pts Which statement is correct? A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0. Any portfolio that is correctly valued will have a beta of 1.0. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph. A risk-free security plots at...
. 1, We have spent a lot of time in the first half of the course distinguishing between sex and gender. Please explain this critical difference in detail. In formulating your response be sure to...
. 1, We have spent a lot of time in the first half of the course distinguishing between sex and gender. Please explain this critical difference in detail. In formulating your response be sure to start off by clearly defining each term (2 points) and then explain the role that gender plays in influencing our social interactions (1 point), and our self-presentation (1 point). Finally, explain what we mean by "doing gender" (1point). Provide examples to support your points.
....
2. Please comment the following statement (30 marks) 1) The expected return of zero beta security...
2. Please comment the following statement (30 marks) 1) The expected return of zero beta security is smaller than risk free rate. (5 marks) 2) According to CAPM, the higher the variance, the higher the expected return. (5 marks) 3) As diversification increases, the systematic risk of a portfolio approaches zero. (5 marks) 4) Analysts may use regression analysis to estimate the index model for a stock. When doing so, the slope of the regression line is an estimate of...
We haven't learnt this is class:( Please help Explain the bird GPS (Global Positioning System) long-distant...
We haven't learnt this is class:( Please help Explain the bird GPS (Global Positioning System) long-distant migrating mechanism using enclosed three papers. The narrative should be framed explaining how birds detect stimuli/role of receptors, integrate information and produce a response. The three papers must cite in your narrative. The paper should address remaining unanswered questions regarding this fascinating behavior.
Need help on the questions below, please?:( 1-Indicate how the SML resolved the tradeoff between risk...
Need help on the questions below, please?:( 1-Indicate how the SML resolved the tradeoff between risk and return. 2- How doe we measure risk for a stock? How do we know the risk of a bond? See this post in context
Please show the steps and explain! Question 1 (10 Marks) Tilda Co. stock is currently priced...
Please show the steps and explain!
Question 1 (10 Marks) Tilda Co. stock is currently priced at $48. You expect its price in one year to be $54 and do not expect any dividends to be paid. The risk free rate is 5%, and the overall market is expected to return 10% a) What will be the current price of Tilda Co. if the expected future price remains the same but its covariance with the market doubles? (4 Marks) b)...
please explain. if you are unsure about your answer
please do not answer question. Thank you.
Question 13 1 pts Which statement is correct? A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0. Any portfolio that is correctly valued will have a beta of 1.0. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph. A risk-free security plots at...
. 1, We have spent a lot of time in the first half of the course distinguishing between sex and gender. Please explain this critical difference in detail. In formulating your response be sure to start off by clearly defining each term (2 points) and then explain the role that gender plays in influencing our social interactions (1 point), and our self-presentation (1 point). Finally, explain what we mean by "doing gender" (1point). Provide examples to support your points.
....
2. Please comment the following statement (30 marks) 1) The expected return of zero beta security is smaller than risk free rate. (5 marks) 2) According to CAPM, the higher the variance, the higher the expected return. (5 marks) 3) As diversification increases, the systematic risk of a portfolio approaches zero. (5 marks) 4) Analysts may use regression analysis to estimate the index model for a stock. When doing so, the slope of the regression line is an estimate of...
Please show the steps and explain!
Question 1 (10 Marks) Tilda Co. stock is currently priced at $48. You expect its price in one year to be $54 and do not expect any dividends to be paid. The risk free rate is 5%, and the overall market is expected to return 10% a) What will be the current price of Tilda Co. if the expected future price remains the same but its covariance with the market doubles? (4 Marks) b)...
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