Reference no: EM131549986
1. You project that a stock will return 15% in a good economy, and lose 2% in a bad one. If there is a 50/50 chance of a good or bad economy,
What is the expected return
What is the variance of returns
What is the standard deviation of returns?
2. A stock has returned 8, 10, and 25% over the last three years.
What is the expected return?
What is the variance of returns?
What is the standard deviation of returns?
3. You estimate the beta of a stock to be 2.0. The market is expect to return 10% next year, and the risk free rate is 2%. What is the expected return of the stock?
4. Under the CAPM, why does stock-specific (idiosyncratic, diversifiable) risk not matter?
Can we ever have any return without some type of risk
: Can we ever have any return without some type of risk? If you take on a large risk, are you guaranteed a large return? Why or why not?
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What do the pieces you read by richard rodriguez
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Liquidity position of finance companies
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What is the expected return-what is the variance of returns
: 1. You project that a stock will return 15% in a good economy, and lose 2% in a bad one. If there is a 50/50 chance of a good or bad economy,
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Explain first advantage of economic to your solution
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