finance-Marble Corp. has a beta of 2.5 and a standard deviation of returns of 20%

QUESTION

1.Most stocks have betas between (Points : 1) -1.00 and 1.00. 0.00 and 1.00. 0.60 and 1.60. 1.00 and 2.00.Question 2.2.Marble Corp. has a beta of 2.5 and a standard deviation of returns of 20%. The return on the market portfolio is 15% and the risk free rate is 4%. What is the risk premium on the market? (Points : 1) 5% 6% 9.00% 11%Question 3.3.Stock A has a beta of 1.2 and a standard deviation of returns of 18%. Stock B has a beta of 1.8 and a standard deviation of returns of 18%. If the market risk premium increases, then (Points : 1) the required return on stock B will increase more than the required return on stock A. the required returns on stocks A and B will both increase by the same amount. the required returns on stocks A and B will remain the same. the required return on stock A will increase more than the required return on stock B.Question 4.4.Wildings, Inc. common stock has a beta of 1.2. If the expected risk free return is 4% and the expected market risk premium is 9%, what is the expected return on Wildings’ stock? (Points : 1) 10.0% 12.0% 13.8% 14.8%Question 5.5.The capital asset pricing model (Points : 1) provides a risk-return trade off in which risk is measured in terms of the market volatility. provides a risk-return trade off in which risk is measured in terms of beta. measures risk as the coefficient of variation between security and market rates of return. depicts the total risk of a security.Question 6.6.An investor currently holds the following portfolio: 8,000 shares of Stock A$16,000Beta = 1.315,000 shares of Stock B$48,000Beta = 1.825,000 shares of Stock C$96,000Beta = 2.2If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is (Points : 1) 14.91%. 15.93%. 21.91%. 23.93%.

 

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