The assumptions of the CAPM model include _______________ I. The stock's price can be affected by...
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The correct answer is option D i.e.
All investors analyze securities in the same way and share the same economic view of the world and All investors have different levels of risk aversion are the assumptions of the CAPM model.
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The assumptions of the CAPM model include
_______________
I. The stock's price can be affected by...
Which of the following are assumptions of the simple CAPM model? I. Individual trades of investors do not affect a stoc...
Which of the following are assumptions of the simple CAPM model? I. Individual trades of investors do not affect a stock's price. II. All investors plan for one identical holding period. III. All investors analyze securities in the same way and share the same economic view of the world. IV. All investors have the same level of risk aversion. I, II, and Ill only I, II, and IV only O 1, II, III, and IV II, III, and IV only...
Q.8 In a regression model, the assumptions of the method of least squares include: [I] Relationship...
Q.8 In a regression model, the assumptions of the method of least squares include: [I] Relationship between x and y is linear [II] the values of X are fixed (non-random) [III] the error terms must be correlated with each other [IV] X is independent of Y [V] the error term is normal and is identically and independently distributed about the mean of zero [VI] the error term is normal but non random a. I, II, V b. II, III, VI...
A. Capital Allocation Lines The optimal CAL is found as the ray from the risk free...
A. Capital Allocation Lines The optimal CAL is found as the ray from the risk free rate that is tangent to the _____________ and is called the ________________. efficient frontier; CML minimum variance portfolio; high range CAL indifference curve; SML lower half of the investment opportunity set; CAPM B. Capital Allocation Portfolio 1 has a standard deviation of 35% and a Sharpe ratio of 0.48. Portfolio 2 has a standard deviation of 29% and a Sharpe ratio of 0.44. Portfolio...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock pri...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
Consider a city that conforms to the assumptions of the basic monocentric city urban model studied...
Consider a city that conforms to the assumptions of the basic monocentric city urban model studied in class, with one key difference. The difference is that the urban residents experience crime, which varies in intensity across the city. The level of crime, as measured by the probability of being robbed on the street, is highest at the CBD. The probability of being robbed falls gradually as distance from the CBD increases, and it reaches zero 5 miles out from the...
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value...
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value B) the expected rate of rectum equals or exceeds the required turn C) the capital gains rate is less than the required rumande dividends are paid D) the market price is greater than the justified price Answer 2) Which of the following variables used in determining a stock's intrinsic als can be known with the greatest level of confidence A] future carmings B) expected...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1....
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
are 1. Confidence intervals can be constructed only under certain assumptions about the samples and population....
are 1. Confidence intervals can be constructed only under certain assumptions about the samples and population. For each Situation below, either (1) construct the confidence interval, or (ii) explain why you cannot (which assumption is missing) and (iii) what would a researcher need to change to be able to construct the confidence interval (a) Suppose SAT scores for a population of students is normally distributed. The SAT scores for 12 randomly selected 1130 1290 1010 1320 950 1250 1340 1100...
This is what I have so far 31. Solow model modification. Consider an economy with the...
This is what I have so far
31. Solow model modification. Consider an economy with the production function y = Vk where n=0.03, and 8 =0.07. The only missing part for our model is s which we generally have assumed is fixed and exogenous. i. Calculate the steady state level of capital per effective worker if s = 0.2. k* = It is unrealistic to assume that saving is a fixed percentage of income regardless of the circumstances so let's...
please answer all questions! 6. Assess the validity of the following statements. I. During Bangladesh's politically...
please answer all questions!
6. Assess the validity of the following statements. I. During Bangladesh's politically created famine, the average amount of food per person was much lower than usual. II. Democracies are less likely to kill their own citizens than other kinds of governments. O Only II is true. Neither I nor II is true. Both I and II are true. O Only I is true. 7. Assess the validity of the following statements. I. Compared with most other...
Which of the following are assumptions of the simple CAPM model? I. Individual trades of investors do not affect a stock's price. II. All investors plan for one identical holding period. III. All investors analyze securities in the same way and share the same economic view of the world. IV. All investors have the same level of risk aversion. I, II, and Ill only I, II, and IV only O 1, II, III, and IV II, III, and IV only...
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
1) An investor should purchase a stock when A) the market price exceeds the intrinsic value B) the expected rate of rectum equals or exceeds the required turn C) the capital gains rate is less than the required rumande dividends are paid D) the market price is greater than the justified price Answer 2) Which of the following variables used in determining a stock's intrinsic als can be known with the greatest level of confidence A] future carmings B) expected...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
are 1. Confidence intervals can be constructed only under certain assumptions about the samples and population. For each Situation below, either (1) construct the confidence interval, or (ii) explain why you cannot (which assumption is missing) and (iii) what would a researcher need to change to be able to construct the confidence interval (a) Suppose SAT scores for a population of students is normally distributed. The SAT scores for 12 randomly selected 1130 1290 1010 1320 950 1250 1340 1100...
This is what I have so far
31. Solow model modification. Consider an economy with the production function y = Vk where n=0.03, and 8 =0.07. The only missing part for our model is s which we generally have assumed is fixed and exogenous. i. Calculate the steady state level of capital per effective worker if s = 0.2. k* = It is unrealistic to assume that saving is a fixed percentage of income regardless of the circumstances so let's...
please answer all questions!
6. Assess the validity of the following statements. I. During Bangladesh's politically created famine, the average amount of food per person was much lower than usual. II. Democracies are less likely to kill their own citizens than other kinds of governments. O Only II is true. Neither I nor II is true. Both I and II are true. O Only I is true. 7. Assess the validity of the following statements. I. Compared with most other...
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