The beta of the market
A.
is 1.
B.
is less than 1.
C.
is greater than 1.
D.
cannot be determined.
Correct answer is option A. is 1
The beta of the market portfolio is 1. Beta of individual stock will depends on how they vary with market.
Pt 1. If a stock has a market beta greater than 1, the expected return will be less than the expected return of market portfolio. Pt. 2 The stock of Target Corporation has a return of 36.43. The market risk premium is 16.94 percent and the risk-free rate is 8.04 percent. What is the beta on this stock? Use the CAPM Equation
A) Less than
B) Equal to
C) Greater than
1. If a stock has a market beta less than 1, the expected return will be less than expected return of market portfolio. True or False? 2. ABC, Inc., has a beta of 1.99. The risk-free rate is 3.45% and the market risk premium is 5.74%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off to two decimal points. 3. Semi-strong-form efficient markets are not weak-form efficient. True or False?
Which of the following statements is true? A. A stock with a beta less than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0. B. A stock with a beta greater than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0. C. A stock with a beta less than zero has no exposure to systematic risk. D. A stock with a beta less than 1.0 has higher nondiversifiable risk than a stock...
.
1. Is the melting point of substance A (a) greater than, (b)
less than or (c) equal to the
melting point of substance B?
Explain your reasoning.
2. Is the specific heat of substance A in its solid state (a)
greater than, less than, or (c)
equal to the specific heat of substance B in its solid
state?
Explain your reasoning.
3. Is the latent heat of fusion of substance A (a) greater than,
(b) less than or (c)...
A beta of -1.8 is considered: A; Defensive or aggressive cannot be defined until the beta of the market is known. B: Aggressive because it is negative C: Defensive because it is negative. D: Defensive because it is less than 1 E: Aggressive because it’s absolute value is greater than 1.
1. A beta coefficient of +1 represents an asset that ________. A. has a higher expected return than the market portfolio B. has the same expected return as the market portfolio C. has a lower expected return than the market portfolio D. is unaffected by market movement 2. A beta coefficient of +1 represents an asset that ________. A. has a higher expected return than the market portfolio B. has the same expected return as the market portfolio C. has...
The value of Rf is: a. greater than or equal to one b. less than or equal to zero c. less than or equal to one d. none of the above Explain
Returns on technology stocks tend to be greater than the market average while the opposite is true for utility stocks. Do you expect a tech stock’s beta to be greater than, about the same or less than the market beta? Same question for the utility stock. ----------- If the Security Market Line becomes steeper, how does that impact the required return for a stock and what is the impact to the stock’s beta? (This is a two-part question.) ----------- How...
1-If the fair value of a stock is greater than its market value, it means that: A. The stock has a low level of risk B. The stock offers a high dividend C. The market is undervaluing the stock. D. The market is overvaluing the stock 2-A profitability index of .85 for a project means that: A-The present value of benefits is 85% greater than the project's costs. B. The project's NPV is greater than zero. C. The project returns...