You own a portfolio which isevenly distributed among U.S. Treasury bills, Stock A with a beta of .84, stock B with a beta of 1.48, and stock C, whichis equally as risky as the market. The risk-free rate of return is 4 percent and the expected return on the
举一反三
- A stock with a beta of zero would be expected to have a rate of return equal to A: the risk-free rate. B: the market rate. C: the prime rate. D: the average AAA bond.
- The expected return rate of A stock is 8%, the risk-free return rate is 4%, and the variance of A stock is 4%, then the Sharpe ratio of A stock is A: 0.2 B: 1 C: 2 D: 0.4
- Given Gitech's beta of 1.55 and a risk free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return? A: 12.4% B: 14.3% C: 17.3% D: 20.4%
- Stock C has a beta of 1.2, while Stock D has a beta of 1.6. Assume that the stock market is efficient. The required rates of return of the two stocks should be the samE。（ ）
- Suppose that the risk-free rate is 5%, risky asset weight (the y) is 50% and market risk premium on risky asset is 5%, what is the expected portfolio return of our portfolio? Write in percentages with the % symbol.______