# chapter-12-homework

1.

value:
1.00 points

 A stock has an expected return of 14.8 percent, its beta is 1.40, and the risk-free rate is 3.1 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)
 Expected return %

1.

Award: 0 out of 1.00 point

 A stock has an expected return of 14.8 percent, its beta is 1.40, and the risk-free rate is 3.1 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)
 Expected return %

Explanation:

 E(Ri) = .148 = .031 + (E(Rmkt) – .031)(1.40); E(Rmkt) = 11.46%

2.

value:
1.00 points

 You own 400 shares of Stock A at a price of \$55 per share, 330 shares of Stock B at \$80 per share, and 600 shares of Stock C at \$28 per share. The betas for the stocks are .7, 1.3, and .5, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)
 Beta

3.

value:
1.00 points

 Stock Y has a beta of 1.30 and an expected return of 15.10 percent. Stock Z has a beta of .70 and an expected return of 8 percent. If the risk-free rate is 4.0 percent and the market risk premium is 8.4 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
 Y Z

4.

value:
1.00 points

 Fill in the following table, supplying all the missing information. Use this information to calculate the security’s beta. (Negative values should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Do not round intermediate calculations. Enter your Return Deviations answers as a whole number percentage. Round Squared Deviations, Product of Deviations answers to 5 decimal places and Security’s beta answer to 2 decimal places. Omit the “%” sign in your response.)
 Returns Return Deviations Squared Deviations Product ofDeviations Year Security Market Security Market Security Market 2009 8 % 5 % % % 2010 -18 % -14 % % % 2011 21 % 15 % % % 2012 38 % 21 % % % 2013 16 % 7 % % % Totals

 Consider the following information on Stocks I and II:
 Rate of Return If State Occurs Probability of State of Economy State of Economy Stock I Stock II Recession .20 .03 -.22 Normal .30 .38 .14 Irrational exuberance .50 .32 .48
 The market risk premium is 9 percent, and the risk-free rate is 4.5 percent.
 1-a. What is the beta of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
 Beta Stock I 1.00 Stock II 3.00
 1-b. Which stock has the most systematic risk? n/r
 2-a. What is the standard deviation of each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)
 Standard Deviation Stock I n/r % Stock II 1.00 %
 2-b. Which one has the most unsystematic risk? n/r
 3. Which stock is “riskier”? n/r

### Change Management Presentation

Purpose of AssessmentDevelop specific strategies with supporting tactics to implement positive change within an organization. You may refer to the information that you

### Driver Safety

You were recently hired as the fleet safety manager of a company that operates a fleet of 25 delivery trucks within a

### Farming Of The Bones By: Edwidge Danticat

Choose one of the following characters or things. Reserve it on the subject line.  Verify before you post because there are to