an asset with a beta less 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 beta of the market A. is 1. B. is less than 1. C. is greater than 1. D. cannot be determined.
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. 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?
3)Suppose a cashless firm A has equity beta of 2, asset beta of 1, then its debt to equity ratio is ____ . 4)Suppose the asset beta of a firm is 1, ND/E ratio is 1, risk free rate is 1%, market risk premium is 5%. Calculate the expected return of your firm for new investors. Enter the return of your firm for new investors _____% 5)Firm A is not listed, and you use comparable method to calculate its beta....
An investment portfolio with a beta of 2.0 is less than twice as risky as the market portfolio. Is this statement true or false and explain your response why.
5. The beta of asset A is 1.3, and the beta of asset B is -0.2. What is the beta of a portfolio that invests $100 in asset A and goes short $50 of asset B?
Under the CAPM, an asset with a lower standard deviation than the market can never have a β less than −1. True or false?
Explain 1) the factors that determine a security’s beta and 2) how asset beta relates to equity beta.
Question: The asset beta of a levered firm is 1.4. The beta of debt is 0.5. If the debt to value ratio is 0.3, what is the equity beta? Formula: Equity beta = Asset beta + Debt to equity ratio * (Asset beta - Beta of Debt) *the debt to equity ratio is NOT given. I must find the debt to equity ratio first to complete the answer. Only the debt to value ratio is provided.