question archive Stock 1 returns Stock 2 returns Market returns Riskless asset returns Period 1 5% 6% 5% 2% Table 1 Period 2 3% 4% 6% 2% Period 3 8% 9% 6% 2% Period 4 6% 3% 3% 2% Period 5 4% 8% 2% 2% 1
Stock 1 returns Stock 2 returns Market returns Riskless asset returns Period 1 5% 6% 5% 2% Table 1 Period 2 3% 4% 6% 2% Period 3 8% 9% 6% 2% Period 4 6% 3% 3% 2% Period 5 4% 8% 2% 2% 1
Subject:FinancePrice: Bought3
Stock 1 returns Stock 2 returns Market returns Riskless asset returns Period 1 5% 6% 5% 2% Table 1 Period 2 3% 4% 6% 2% Period 3 8% 9% 6% 2% Period 4 6% 3% 3% 2% Period 5 4% 8% 2% 2% 1. Consider Table 1. The average return for stock 1 and stock 2 are: a. 5.2% and 6.0%, respectively. b. 6.0% and 4.9%, respectively. c. 5.2% and 6.4%, respectively. d. 5.0% and 5.8%, respectively 2. Consider Table 1. The variance of stock 1 is: a. 3.70%. b. 6.50% c 1.92% d. 0.00% 3. Consider Table 1. The correlation of returns for stocks 1 and 2 is: a 0.41 b. 0.60 C. 0.22 I d. 1.00 4. Consider Table 1. The beta and expected return of stock 2 according to the CAPM are: a. 1.00 and 4.40%, respectively. b. 0.45 and 3.45%, respectively. C. 0.12 and 2.40%, respectively. d. 0.08 and 2.18%, respectively
