The total risk associated with investment

Assignment Help Financial Management

Reference no: EM131933792

1. Allison's portfolio has an expected return of? 14% and a beta of 1.37. ? Brianna's portfolio has an expected rate of return of? 11% and a beta of 1. The risk−free rate is? 3% and the expected rate of return on the market is? 12%. According to the? Jensen's measure,

A. the portfolios are equally desirable.

B. the answer depends on Allison and? Brianna's risk tolerance.

C. Brianna has the better portfolio.

D. Allison has the better portfolio.

2. The total risk associated with an investment can be divided into _____.

A. systematic and nondiversifiable risk

B. firm-specific and unsystematic risk

C. market and firm specific risk

D. market and nondiversifiable risk

Reference no: EM131933792

Questions Cloud

Explain what type of inventory control system : Explain what type of inventory control system would not find the EOQ of much use?

What is the maximum profit and loss for position : The investor sells a call for $.65 with a strike price of $60. What is the maximum profit and loss for this position?

Capital asset pricing? model-required return for investment : According to the Capital Asset Pricing? Model, the required return for this investment is

Lowest cost silver plan in the exchange : What is the maximum percentage of income you are required to pay for the 2nd lowest cost silver plan in the Exchange? How much is that in dollars per month

The total risk associated with investment : The total risk associated with an investment can be divided into _____.

Estimate the cost of equity capital : Which of the following is an assumption in applying the capital asset pricing model (CAPM) to estimate the cost of equity capital?

What is hedge ratio of the call : The range of S is 100 while that of C is 20 across the two states. What is the hedge ratio of the call?

Inflation has increased and yield on bonds : Inflation has increased and the yield on bonds similar to? Brookfield's is now? 6%.

What is the intended impact on the supply of bank loans : How does an open market purchase affect the banking system’s balance sheet? What is the intended impact on the supply of bank loans?

User Account

All Pages