a. Fill in the missing values in the table.
(Leave no cells blank - be certain to enter 0 wherever
required. Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Security | Expected Return | Standard Deviation | Correlation* | Beta |
Firm A | .102 | .39 | .77 | |
Firm B | .148 | .58 | 1.32 | |
Firm C | .168 | .57 | .43 | |
The market portfolio | .12 | .20 | ||
The risk-free asset | .05 | |||
*With the market portfolio.
b-1. According to the CAPM, what is the expected
return of Firm A's stock? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Expected return
b-2. What is your investment recommendation for
someone with a well-diversified portfolio?
Sell
Buy
b-3. According to the CAPM, what is the expected
return of Firm B's stock? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Expected return
b-4. What is your investment recommendation for
someone with a well-diversified portfolio?
Sell
Buy
b-5. According to the CAPM, what is the expected
return of Firm C's stock? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Expected return
b-6. What is your investment recommendation for
someone with a well-diversified portfolio?
Sell
Buy
a. Fill in the missing values in the table. (Leave no cells blank - be certain...
a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-1. What is the expected return of Firm A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-2. What is your investment recommendation regarding Firm A for someone with a well-diversified portfolio? Sell...
You have been provided the following data on the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Security Expected Return Standard Deviation Correlation* Beta Firm A .101 .40 .76 Firm B .149 .59 1.31 Firm C .169 .56 .44 The market...
You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Security Expected Return Standard Deviation Correlations Beta Firm A 0.101 0.40 0.76 Firm B 0.149 0.59 1.31 Firm C 0.169 0.56 0.44 The...
You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-1. What is the expected return of Firm A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2...
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