Please answer questions 1-6

Instructions: Answer all questions on the scantron provided. 1. A stock's beta value is a. its measure of marketability risk b. its measure of acceptable risk c. its measure of market-related risk d. its measure of diversifiable risk 2. The expected return on the market for the next period is 16%. The risk free rate of return is 7% and Wilson Products Company has a beta of 1.1. Wilson's required rate of return is a. 17.6% b. 16% c. 16.9% d. none of the above 3. What does the standard deviation of returns measure? a. systematic risk b. unsystematic risk c. systematic risk minus unsystematic risk d. total risk 4. Beta is useful for a. comparing the absolute risk of different stocks b. comparing the unsystematic risk of different stocks c. comparing the systematic risk of different stocks d. comparing the total risk of different stocks 5.If you invest 40% of your holdings in a security with an expected return of 8% and the remainder in a security with an expected return of 12%, what is the expected return on your portfolio? a. 3.2% b. 4.8% c. 7.2% d. 9.6% e. 10.45 6. The expected return on the market for the next period is 15%. The risk free rate of return is 7% and Wilson Products Company has a beta of 1.5. Wilson's required rate of return is a. 15.0% b. 20.0% c. 16.9% d. none of the above Instructions: Answer all questions on the scantron provided. 1. A stock's beta value is a. its measure of marketability risk b. its measure of acceptable risk c. its measure of market-related risk d. its measure of diversifiable risk 2. The expected return on the market for the next period is 16%. The risk free rate of return is 7% and Wilson Products Company has a beta of 1.1. Wilson's required rate of return is a. 17.6% b. 16% c. 16.9% d. none of the above 3. What does the standard deviation of returns measure? a. systematic risk b. unsystematic risk c. systematic risk minus unsystematic risk d. total risk 4. Beta is useful for a. comparing the absolute risk of different stocks b. comparing the unsystematic risk of different stocks c. comparing the systematic risk of different stocks d. comparing the total risk of different stocks 5.If you invest 40% of your holdings in a security with an expected return of 8% and the remainder in a security with an expected return of 12%, what is the expected return on your portfolio? a. 3.2% b. 4.8% c. 7.2% d. 9.6% e. 10.45 6. The expected return on the market for the next period is 15%. The risk free rate of return is 7% and Wilson Products Company has a beta of 1.5. Wilson's required rate of return is a. 15.0% b. 20.0% c. 16.9% d. none of the above