Question: Rank the following three stocks by their risk return relationship best
Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 12 percent and standard deviation of 25 percent. The average return and standard deviation of Idol Staff are 15 percent and 35 percent; and of Poker-R-Us are 9 percent and 20 percent.
Answer to relevant QuestionsRank the following three stocks by their risk-return relationship, best to worst. Night Ryder has an average return of 12 percent and standard deviation of 32 percent. The average return and standard deviation of WholeMart ...In 2000, the S&P 500 Index earned -9.1 percent while the T-bill yield was 5.9 percent. Does this mean the market risk premium was negative? Explain. Compare and contrast the assumptions that need to be made to compute a required return using CAPM and the constant growth rate model. If stock prices are not strong-form efficient, then what might be the price reaction to a firm announcing a stock buyback? Explain. You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio? This ...
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