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* You **** a *********** ********* consisting ** * $5000 investment ** **** ** ** different common stocks *** portfolio beta ** ***** ** *** *** have decided ** **** a **** mining ***** ** * **** ** ***** *** *** *** *** proceeds to buy * **** amount ** * steel company stock (b = **** **** is the *** **** ** the portfolio?
******* * ***
******
******
12311
12927
******** * * ********* *** ******** **** ** ****** *** ******* *** ******** **** *** ********* ****** * *** **** ** ********* in the future (2) the **** risk-free **** is *** *** *** ****** **** premium ** 50% (4) Mercury has a **** of 100 and *** *** ******** **** of return *** ******** 150% **** *** **** * ******
(Points * 2)
1029%
******
******
******
******** 3 * In * ********* of ***** different ****** ***** ** *** ********* ***** *** be ***** (Points * ***
*** riskiness ** the ********* ** **** **** the ********* ** **** ** the stocks ** they **** held ** isolation
*** ********* of *** ********* ** ******* **** the riskiness ** *** ** *** ** *** *******
The **** of *** portfolio ** **** than *** betas ** each of *** ********** *******
*** beta ** *** ********* ** ******* **** *** **** ** one or *** of *** ********** ************* ******
******** * * ** **** almost ****** find **** *** **** of * *********** ********* ** **** ****** over **** **** the **** of * ****** ******** ******* * ***
*****
******
******** * 5 Stock A’s **** ** 15 *** ***** B’s **** ** ** ***** ** *** following statements **** ** **** ***** ***** securities? ******* ****** ************ ******* ****
**** **** in ********* ***** * *** greater **** **** ***** B
***** * **** ** * more ********* ******** to * ********* **** ***** **
***** * **** ** * **** ********* addition ** a ********* **** Stock **
*** ******** ****** ** ***** * ****** ** greater than **** on Stock **
******** * * ***** ** *** following ********** is ******** ******* * 2)
Characteristic *********** ** another **** *** *** ******** ****** Line
*** ************** **** ** the ********** **** that ******* **** ******** *** ******* ** * ********** ***** ****** *** ******* ** * ***** **** * different industry
*** slope ** *** ************** **** ** *** stock’s ******** **********
*** distance of *** **** points from *** ************** **** is * ******* ** *** stock’s ************* risk
******** * * ***** of *** ********* is *** * ********* ******* with **** *** its estimation? (Points : ***
********* a ******** ** ******* **** not have * **** ******* ***** *** ** **** ** * ***** *** *********** *****
********* during * ****** **** *** ******* ** undergoing * ****** such as toward **** leverage ** riskier ****** the ********** beta will ** *********** ********* **** *** ****************** or *************** ************* beta
*** **** ** ********** ************* *** ****** **** time sometimes drastically
Sometimes the past **** **** to calculate beta ** not ******* the ****** **** ** the firm *** the ****** ******* ********** have ********
******** * 8 ** *** returns of *** ***** are ********** correlated then *** of **** **** **** * ******** **** (Points * ***
True
False
******** 9 9 ** ** ******** *** a firm ** have * ******** **** even if *** *********** ******* *** ******* *** those ** another **** are ******** ******* * ***
*****
******
******** ** ** ***** ** the **** measure of **** *** an asset **** in ********* *** which ** *** **** ******* *** an ***** held ** * *********** ********** ******* ****
********* correlation ************
******** ********** *********** coefficient
***** variance
*********** ** ********** ****
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Gb550 unit 4 quiz.docx
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