Question: I do not need process, just answer thx Green Elf Corporation's common stock has a return of 12%. Assume the risk-free rate is 12. Suppose

I do not need process, just answer thx Green Elf Corporation's

I do not need process, just answer thx

Green Elf Corporation's common stock has a return of 12%. Assume the risk-free rate is 12. Suppose the 4%, the expected market return i s 9%, and no unsystemnatic influence affected the Green Elf's return. The beta for the firm is: he beta f A. 1.60. B. 2.40. C. 3.00. D. It is impossible to calculate beta without the inflation rate. E. 0.89 13. Which one of the following is an examp le of a nondiversifiable risk? A. a well respected president of a fim suddenly resigns B. a well res pected chairman of the Federal Reserve suddenly resigns C. a key employee suddenly resigns and accepts employment with a key competitor REXEL a poorly managed firm suddenly goes out of business due to lack of sales 14. Shareholders d iscount many corporate announcements because of their prior expectations. If an announcement causes a stock price to change it will mostly be driven by A. the expected part of the announcement. ture B. market inefficiency C. the unexpected part of the announcement. D. the systematic risk. E. None of the above. 15. A factor is a variable that: A. affects the returns of risky assets in a systematic fashion. B. affects the returns of risky assets in an unsystematic fashion. C. correlates with risky asset returns in a unsystematic fashion. D. does not correlate with the returns of risky assets in an systematic fashion. E. responsible for causing fear" in the popular CBS TV show. 16. Which one of the following statements is correct concerning the standard deviation of a The greater the diversification of a portfolio, the greater the standard deviation of that portfolio. C. Standard deviation is used to determine the amount of risk premium that should apply to a portfolio E. The standard deviation of a portfolio is equal to a weighted average of the standard deviations of d A. B. The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio. D. Standard deviation measures only the systematic risk of a portfolio. individual securities held within the portfolio. 17. A stock had returns of 9% 6%,4%, and 16% over the past four years. What is the standard deviation of these returns? A. 8.56% B. 6.67% C. 7.14% D. 9.25% E. 7.98%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please answer the M.C questions that require calculations. Include steps to the solved answers. Question 1 Answer saved Marked out of 1.11! ? Flag question Question 2 Not yet answered Marked out...

Please provide calculation explanations to the following M.C: Question 1 Answer saved Marked out of 1.11! ? Flag question Question 2 Not yet answered Marked out Df1.00 I? Flag question Question 3 Not...

Please thank you Green Elf Corporation's common stock has a return of 12%. Assume the risk-free rate is 12. Suppose the 4%, the expected market return i s 9%, and no unsystemnatic influence affected...

Problem 2 (25 points) Suppose the Capital Asset Pricing Model (CAPM)) is valid in a simple market. Use CAPM to explain and answer following questions. Note: There is no relationship between each...

1. What must be the beta of a portfolio with E ( r P ) = 15.40%, if r f = 4% and E ( r M ) = 10%? (Round your answer to 2 decimal places.) Beta of portfolio 2. The market price of a security is $48....

Preparatory Question Set: FCFs and Corporate Valuation ( Module IV ) What is net operating working capital? Why does it exclude most short - term investments and notes payable? What is total net...

(7-1) Thress Industries just paid a dividend of $1.50 a share (i.e, Do $1.50). The d lculation expected to grow 5% a year for the next 3 years and then 10% a year thereafter EASY PROBLEMS 1 the...

17. Common stock of PR Co. has an expected return of 12%. The expected market return is 14% and the risk-free rate is 296, what is PR Co's beta coefficient? a) 1.2 b) 0.7 c) 0.95 d) 0.83 18. ABC...

Yield to Maturity and Current Yield You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and has an 7% annual coupon. The bond has a current yield of 5.74%. What is...

Tresnan Brothers is expected to pay a $1.40 per share dividend at the end of the year (i.e., D 1 = $1.40). The dividend is expected to grow at a constant rate of 4% a year. The required rate of...

The U.S. Department of Labor publishes descriptions of jobs, educational requirements, and the outlook for many jobs and professions. Go to its site at www.bls.gov and answer the following questions:...

Find the average of ten consecutive multiples of 12, starting from the fifth multiple. 1. 124 2. 1140 3. 114 4. 126 5. 1260

1 ) How do I use end - of - May market capitalization data in STATA to show that the Russell 2 0 0 0 Regression Discontinuity design is valid for the 1 0 0 0 cut - off? 2 ) Next, how do I use the end...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...