54 The risk premium on the market portfolio will be proportional to A the average degree of risk aversion of the investor population B the risk of the market portfolio as measured by its variance C the risk of the market portfolio as measured by its beta D both A and B are true E both A and C are ...

Solution The correct option is D both A and B a ...

54. The risk premium on the market portfolio will be proportional to A. the average degree...

Fantastic news! We've Found the answer you've been seeking!

Question:

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-1305635937

Concise 9th Edition

Authors: Eugene F. Brigham

See More Books

Posted Date: Dec 12, 2022 03:41 AM

See More Questions

Suppose that the risk premium on the market portfolio is estimated at 8% with a standard deviation of 22%. What is the risk premium on a portfolio invested 25% in Toyota and 75% in Ford, if they have...
If investors aversion to risk increased, would the risk premium on a high-beta stock increase by more or less than that on a low-beta stock? Explain.
If investors aversion to risk increased, would the risk premium on a high-beta stock increase by more or less than that on a low-beta stock? Explain. Discuss.
All adiabatic temperature changes occur as a result of a. changes in the absolute humidity of the air. b. expansion or compression of the air. c. changes is specific humidity d. the addition or...
1. How well does Gundersons development program follow the career management process described in Figure? Identify any elements of that system that are missing. 2. What measures would you recommend...
Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and their dependents?
The objective . . . is not to develop one single approach to measuring and reporting eco-efficiency. Rather it is to establish a general, voluntary framework that is flexible enough to be widely...
Heather Company has $10,000 to invest. One alternative will yield 10% per year, compounded annually for four years. A second alternative is to deposit the $10,000 in a bank that will pay 8% per year,...
IceSculpt Industries makes custom ice sculptures, serving pieces and flavored ice cubes for drinks for caterers and party planners. They receive deliveries of two kinds of ice over the course of the...
Based on Figure, Joe, one of your systems analysis team members, made the following entry for the data dictionary used by Marilyns Tours: DATA ELEMENT = TOURIST* * * * PAYMENT ALIAS = TOURIST PAY...
A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to the cumulative sum of the present value of a single sum factors over all...
Simpson should estimate the initial outlay and the terminal year nonoperating cash flow, respectively, to be closest to: A. 1.50 billion and 0.70 billion. B. 1.90 billion and 0.70 billion. C. 1.90...
The following are selected account balances for Warren Clinic as of December 31, 2015, in alphabetical order. Create Warren Clinics balance sheet. Accounts payable Accounts receivable, net Cash $...
Alan Naiman was a frugal social worker who used duct tape to repair his shoes, looked for deals at the supermarket, and chose fast-food restaurants when it was his turn to treat friends to lunch....
What is the NPV (C$ millions) of the original project for Society Services without considering the expansion option? A. 6.11. B. 5.66. C. 2.33. The capital budgeting committee for Laroche Industries...
The optimal subset of the six projects that Schoeman is considering consists of Projects: A. 1 and 5. B. 2, 3, and 4. C. 2, 4, 5, and 6. The capital budgeting committee for Laroche Industries is...
It follows from equation (11.34) of Problem 11.6 that Q=-kT log E=U - TS- uN. Show that [-kT log E (T, , V)] is an extensive variable, so that if the intensive variables T and u are kept constant,...
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $9,000 at the end of the first year, and you anticipate that your annual savings will...
The real risk-free rate is 2.5% and inflation is expected to be 2.75% for the next 2 years. A 2-year Treasury security yields 5.55%. What is the maturity risk premium for the 2-year security?
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 6.0%....
Your medical terminology instructor listed the following grades for the class out of a 75-point test: 34, 36, 41 , 43, 44,49,50, 55,57, 60,64, 66, 67,67, 67,68,68,69, 70, 73 a. Find the 90th...
From the following list of number of discharges each day in September, compute the mean, median, mode, and range. Round the mean and median to one decimal point. University Hospital Number of...
Use the following information to compute the ALOS and median LOS and range for Community Nursing Center. The discharge date is June 2, 20XX (a non-leap year). Round the ALOS to one decimal place....

54. The risk premium on the market portfolio will be proportional to A. the average degree...

Question:

Expert Answer:

Solution The correct option is D both A and B a... View the full answer

Fundamentals of Financial Management

Students also viewed these finance questions