Question: please answer all for a like and good rating :) THANKS!! Assume that all investments are priced based on the capital asset pricing model (CAPM)



Assume that all investments are priced based on the capital asset pricing model (CAPM) and there is currently no mispricing in the stock market. The current market risk premium is equal to the historical average premium and the risk free rate is equal to the risk free rate in year 60. Based on the information in the Portfolio Analysis Problems Data 04 22 23A Excel file and using the CAPM, what is the expected annual retum for stock #2 ? Less than 5% Between 5% and 10% Between 10% and 15% Between 15% and 20% More than 25% QUESTION 12 Based on the information in the Portfolio Analysis Problems Data 04 2223A Excel file and the capital asset pricing model (CAPM), what is the market beta for a portfolio with 50% invested in stock #1 and 50% invested in stock 42 ? Less than 0.50 Between 0.50 and 0.75 Between 0.75 and 1.25 Between 1.25 and 1.50 More than 1.50 Assume that all investments are priced based on the capital asset pricing model (CAPM) and there is currently no mispricing in the stock market. The current market risk premium is equal to the historical average premium and the risk free rate is equal to the risk free rate in year 60. Based on the information in the Portfolio Analysis Problems Data 04 22 23A Excel file and using the CAPM. what is the expected annual return for a portfolio that has 50% invested in stock #1 and 50% invested in stock #2 ? Less than 5% Between 5% and 10% Between 10% and 15% Between 15% and 20% More than 25% QUESTION 14 Based on the information in the Portfolio Analysis Problems Data 042223A Excel file, what is the correlation between the returns of stocks 1 and H2? Less than 0.20 Between 0.20 and 0.40 Between 0.40 and 0.60 Between 0.60 and 0.80 More than 0.80
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