1-Assume that over the past 100 years IBM had 30 years with a -10% return, 40 years with a 5% return, and 30 years with a 15% return. What is the sample standard deviation of IBM?

2-Assume that the expected return for Canyon Buff Enterprise (CBE) is being calculated using the CAPM. CBE's beta is 1.5, the risk-free return is 3%, and the expected market return is 7%. What is the expected return for CBE?

3-DataPriceDividend

1/1/201950

1/1/2019450.25

9/12/2019550.25

0/12/2019520.25

12/31/2019540.25

IBC has dividends and prices following the table above. Assuming dividends are reinvested, what was IBC's annual return for 2019?

4- Which of these risks would most likely be a diversifiable risk for investors?

Answers:

A. A hurricane damages factories near the Gulf Coast.

B. Congress passes legislation that raises the corporate tax rate.

C. The Federal Reserve increases the interest rate.

D. The US dollar strengthens, making exports more expensive for non-US customers

Answer rating: 100% (QA)

1 To calculate the sample standard deviation of IBMs returns we need to find the average return and then calculate the deviations from the average Her... View the full answer