true or false: the risk premium for every asset is positive.
true or false: the market risk premium is always positive.
True or false: CAPM predicts that, in equilibrium, every asset will have the same ratio of risk premium to total risk.
QUESTION 12 risk premium for common stocks must be positive. 。True O False The
true or false: according to the CPM, the risk for a security with high diversifiable risk and high systematic risk is grater than the risk premium for a security with low diversifiable risk and high systematic risk.
Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk premium is 0.07, and the market risk premium has a standard deviation of 25%, then what is asset B's expected return under the CAPM? Asset A has a CAPM beta of 1.5. The covariance between asset A and asset B is 0.13. If the risk-free rate is 0.05, the expected market risk...
True or false? The risk premium, or spread, between corporate bonds and Treasury securities tends to increase as the time to maturity increases.
If you know the risk-free rate, the market risk-premium, and the beta of a stock, then using the Capital Asset Pricing Model (CAPM) you will be able to calculate the expected rate of return for the stock. True False
Investors can reduce risk by holding more than one asset in a portfolio. True or false?
1. true or False: Chemical manufacturer DuPont has approximately $0.94 in assets for every dollar in sales. According to asset intensity for every $100 increase in sales, the firm would need about $94 of additional assets. 2. True or False: When venture capitalists invest in a start-up business, they contribute debt capital. 3. True or False: Treasury bills are short-term securities issued by the United States government. 4. True or False: Both debt and equity capital have set maturities. 5....
tions the Beta What is the value of Risk Premium for Asset 2 What is the value of Market Risk Premium for A 3. What is the value of Beta for Asset A? 4. If Beta for Asset A decreased to 1.5, what would