Security is based on which one of the types of risk

Assignment Help Financial Management

Reference no: EM132067312

1. The risk premium for a security is based on which one of the following types of risk?

total

systematic

diversifiable

surprise

2. If the beta of COKE Co. is -0.23, risk-free rate is 3% and the market risk premium is 7%, calculate the expected rate of return for COKE stock:

2.08%

3.92%

4.61%

1.39%

3. You would like to invest $20,000 and have a portfolio expected return of 12 percent. You are considering two securities, A and B. A has an expected return of 18 percent and B has an expected return of 8 percent. How much should you invest in stock A if you invest the balance in stock B to achieve the 12 percent portfolio return?

$6,250

$5,500

$7,000

$8,000

Reference no: EM132067312

Questions Cloud

School administrators that may affect collaboration : What are three practical issues faced by teachers and school administrators that may affect collaboration?

Explain what is happening in your chosen depiction : What relevant terms, theories, or ideas from the class can be used to explain what is happening in your chosen depiction?

How does the tax shield of debt affect project valuation : How does the tax shield of debt affect project valuation under the standard free-cash flow method of computing NPV as opposed to the APV method?

Intervention technique is good to use for adolescent : What intervention technique is good to use for adolescent (16-year-old) going through bullying at school?

Security is based on which one of the types of risk : The risk premium for a security is based on which one of the following types of risk?

Designs fitting into clinical practice : How do you see the information on small group and quasi-single case designs fitting into clinical practice?

What would be your rate of return : The stock of the Madison Travel Co. is selling for $28 a share . You put in a limit buy order at $24 for one month. During the month, the stock price declines.

University of southern california for social work : Currently I am going University of Southern California for social work and was wondering if you could help on the assignment and structure (outline)

How liquid is the firm : How liquid is the firm? Will it be able to pay its bills as they come due? How has the firm financed the purchase of its assets? How efficient has the firm's.

User Account

All Pages