Asset systematic risk firm-specific risk

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Reference no: EM132055951

1. Suppose the CAPM holds and you have the following information on different assets:

Asset Systematic Risk Firm-specific risk

A 0.12 0.11

B 0.11 0.17

C 0.10 0.14

Which one of the following is true?

A) Asset A has the largest Beta

B) Asset B has the largest Beta

2. Beta measures-

a. Total risk

b. Market risk

c. Stand alone risk

d. Risk Premium

e. Correlation coefficient

3. If a project has an initial outlay of $38,000 and cash flows of $13,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).

Reference no: EM132055951

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