Business
Business, 23.07.2019 04:00, mathman783

Stock y has a beta of 1.25 and an expected return of 12.6 percent. stock z has a beta of .8 and an expected return of 9.9 percent. required: what would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (do not round intermediate calculations. enter your answer as a percentage rounded to 2 decimal places (e. g., 32.

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Business, 31.10.2019 00:31, sonykorah7279
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Business, 05.11.2019 03:31, americus777oz2aze
Stock a has a beta of 0.8, stock b has a beta of 1.0, and stock c has a beta of 1.2. portfolio have 1/3 of its value invested in each of these stocks. each stock has a standard deviation of 25%, and their returns are independent of one another, ie., the correlation coefficients between each pair of stock is zero. assuming the market is in equilibrium, which of the following statements is correct? a. portfolio p's expected return is greater than the expected return on stock c.b. portfolio p's expected return is greater than the expected return on stock bc. portfolio p's expected return is equal to the expected return on stock ad. portfolio p's expected return is less than the expected return on stock be. portfolio p's expected return is equal to the expected return on stock b.
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