Please answer study questions

9. What does the beta of a stockmeasure?

(Select the best choicebelow.)

A. Betameasuresleverage.

B. Betameasurestheamountofsystematicriskinastock.

C. Betameasurestheuseofdebt.

D. Beta measures interest rate risk.

10. Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%. Also suppose that therisk-free interest rate is 4%.

a. Use the beta of a firm that goes up on average by 43% when the market goes up and goes down by

17% when the market goes down to estimate the expected return of its stock. How does this compare with thestock's actual expectedreturn?

b. Use the beta of a firm that goes up on average by 18% when the market goes down and goes down by

22% when the market goes up to estimate the expected return of its stock. How does this compare with thestock's actual expectedreturn?

a. Use the beta of a firm that goes up on average by 43% when the market goes up and goes down by

17% when the market goes down to estimate the expected return of its stock. How does this compare with thestock's actual expectedreturn?

The beta of the stock is _______. (Round to two decimalplaces.)

11. You are considering how to invest part of your retirement savings. You have decided to put $200,000

into threestocks: 50% of the money in GoldFinger(currently $25/share), 25% of the money in Moosehead(currently $80/share), and the remainder in Venture Associates(currently $2/share).

If GoldFinger stock goes up to $30/share, Moosehead stock drops to $60/share, and Venture Associates stock rises to $3 per share.

a. What is the new value of theportfolio?

b. What return did the portfolioearn?

c. If youdon't buy or sell any shares after the pricechange, what are your new portfolioweights?

a. What is the new value of theportfolio?

The number of shares of GoldFinger is ______ shares(Round to the nearestinteger.)