Answers
Please rate thumbs up
a) Firm A Correlation 0.26 =0.83*0.102/0.33 Firm B Standard deviation 0.38 =1.38*0.142/0.52 Firm C Beta 1.44 -0.37*0.63/0.162 The market portfolio Correlation 1.00 1.00 Beta The risk free asset Standard deviation Correlation 0 Beta b-1) Firm A Expected return 10.81% -5%+0.83*(12%-5%) b-2) CAPM return > Expected return. Sell the Stock. b-3) Firm B Expected return 14.66% -5%+1.38*(12%-5%) b-4) CAPM return > Expected return. Sell the Stock. b-5) Firm C Expected return 15.08% -5%+1.44*(12%-5%) / b-6) CAPM return < Expected return.
.
Buy the Stock.
Similar Solved Questions
1 answer
5, A swimming pool initially contains 10,000 gal of water which is 1% chlorine. Pure water...
5, A swimming pool initially contains 10,000 gal of water which is 1% chlorine. Pure water flows into the pool at the rate ot 20 gal/min and leaves at the rate of 30 gal/min. What is the concentration of chlorine in the pool after 2 hour? When theoretically will the tank become empty? Ans....
1 answer
Discrete Mathematics Time Complexity Analysis Due: May 9th, 2019 Math 4 6026 Heap Sort Another algorithm for sorting uses a specialized tree structure called a "heap." Specifically, we wi...
Discrete Mathematics Time Complexity Analysis Due: May 9th, 2019 Math 4 6026 Heap Sort Another algorithm for sorting uses a specialized tree structure called a "heap." Specifically, we will use a binary heap, which is like a binary tree with hierarchy. Here is an example of a binary heap...
1 answer
A person's prescription for her new bifocal glasses calls for a refractive power of -0.400 diopters...
A person's prescription for her new bifocal glasses calls for a refractive power of -0.400 diopters in the distance-vision part, and a power of 1.85 diopters in the close-vision part.What are the near and far points of this person's uncorrected vision? Assume the glasses are 2.00 cmfrom the ...
1 answer
Answer 5 and 6 please 5. Refer to Figure 11.1. Which of the following has the...
answer 5 and 6 please 5. Refer to Figure 11.1. Which of the following has the highest ionization energy? a. carbon or oxygen c. magnesium or aluminum b. phosphorus or sulfur d. magnesium or calcium 6. Refer to Figure 11.2. Which of the following has the largest atomic radius? a. carbon or oxygen c. ...
1 answer
3. Calculate the pH of a solution prepared by diluting 0.25 mL of a 6.0M NaOH with water to a total volume of 20.25...
3. Calculate the pH of a solution prepared by diluting 0.25 mL of a 6.0M NaOH with water to a total volume of 20.25 mL. Record this pH in Part I data sheet, Beaker #2 for Theoretical Final pH. 4. Calculate the pH of a buffer solution prepared by mixing 10.0 mL of a 0.50 M CH,CO2H and 10.0 mL of a 0....
1 answer
What is an example of a non-spontaneous process practice problem?
What is an example of a non-spontaneous process practice problem?...
1 answer
How do I convert the polar equation #r=10 sin theta# to its Cartesian equivalent?
How do I convert the polar equation #r=10 sin theta# to its Cartesian equivalent?...
1 answer
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Credits Debits 31,600 41,000 2,080 61,000 21,000 2,400 6,500 B4,000 31,500 32,000 51,000 A...
2 answers
Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for av...continues
Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Which of the followingindependent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects?a.Project A, which has ...
1 answer
10 pts Which of the following is not a factor in determining whether an Item is...
10 pts Which of the following is not a factor in determining whether an Item is a foture that has attached itself to real property? The cost of the item paid for by the previous owner Whether the item is attached in a way that would be harmful to remove The item was adapted or customized to a piece ...
1 answer
HW#4 Given 4 versus Vas curve as below, where β-8mA/V2 . la = β(gs-v,)', draw v,...
HW#4 Given 4 versus Vas curve as below, where β-8mA/V2 . la = β(gs-v,)', draw v, versus las for below inverter circuit. v,-1V. Curve 70 60 50 30 20 10 OS1152 25S 4 45 vav oan...
1 answer
п You may need to use the appropriate technology to answer this question Three admission test...
п You may need to use the appropriate technology to answer this question Three admission test preparation programs are being evaluated. Suppose the scores obtained by a sample of 20 people who used the programs provided the following data. Program A C 510 450 600 400 510 630 470 400 580 530 42...
1 answer
The roof truss is bolted to a reinforced masonry pier at A and connected to an...
The roof truss is bolted to a reinforced masonry pier at A and connected to an elastomeric pad at C. The pad, which can apply vertical restraint in either direction but no horizontal restraint, can be treated as a roller. The support at A can be treated as a pin. Compute the reactions at supports A ...
1 answer
9) An insulated container contains V liters of hot water at temperature T. If M kg...
9) An insulated container contains V liters of hot water at temperature T. If M kg of ice at 0 °C is added to the water, what is the temperature of the system when it reaches equilibrium? Reminder, for water: 1L = 1 kg Cwater = 4190 Cice = 2100 ROK Lboll = 2.26 x 106 steam kg = 2000 .,Lmelt = 3....
1 answer
Do part b Calculate the standard enthalpy change for the reaction 2A+B=2C+2D Use the following data...
do part b Calculate the standard enthalpy change for the reaction 2A+B=2C+2D Use the following data Substance ΔΗ: (kJ/mol) А -227 B -419 с 195 D -525 Express your answer to three significant figures and include the appropriate units. View Available Hint(s) AH x = 213 kJ Previo...
1 answer
1. A rocket with a mass of 2.75 x^ 10 kg exerts a vertical force of...
1. A rocket with a mass of 2.75 x^ 10 kg exerts a vertical force of 3.75 x ^10 N in the gases it expels. Determine your speed after 8.0s....
1 answer
Consider a gene locus with two alleles: A and a. suppose that in a certain population, the freque...
Consider a gene locus with two alleles: A and a. suppose that in a certain population, the frequency of allele A to be p and allele a to be 1-p. Under Hardy-Weinberg's Equilibrium (HWE), the two alleles randomly unite to form three genotypes AA, Aa and aa with probabilities [p,2p(-, a) Suppose w...