Question: i just need answer no explanation 10) When market risk premium is 10% and the risk free rate is 7% then the average expected return

i just need answer no explanation
10) When market risk premium is 10% and the risk free rate is 7% then the average expected return on for the overall market is....... % a) 6 b) 13 c) 15 d) 17 e) 18 f) 19 11) The beta for a portfolio comprising 2 investments of Rs 100 and Rs 90 with beta 1.5 and 2 respectively is..... a) (100x2 +90x1.5)/190 b) (100x1.5 +90x2)/190 c) (100x1.5 + 90x2)/110 d) (100x1.5 - 80x2)/150 e) (100x1.5 + 80x2)/190 If the expected return of a stock on weak and strong demand is 20% and 50% with probability 0.3 and 0.7 then average expected return on stock is............% a) 20x0.3 + 50x 0.7 b) 20X0.7 + 50x 0.3 e) 50x0.3 + 20x 0.7 d) 20x0.3 - 50x 0.7 e) 20x0.3 +50x 0.6 12) 13) If expected return of a stock on weak and strong demand is 20% & 50% with average expected return of 41% & probability 0.3 & 0.7, then variance of returns is... a) {(41+2090.3 + (41-5090.7; b) {(41-20)0.3 + (41+50)0.7) c) {(41-2090.7 +(41-5090.3} d) {(41-20)0.3 + (41-50)0.73 e) {(41-20) 0.3 + (41-50) 0.7) 14) If you purchase common stock for Rs 5000 now that has a 60-40% chance of being either worth less or worth Rs 8000 in a year, then expected value in the amount is Rs........ a) 0x0.5 + 8000x0.5 b) 5000x0.5 + 8000x0.5 c) 0x0.6 + 8000x0.4 d) 0x0.6 + 8000x0.5 e) 0x0.6 + 8000x0.5
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
