Question: Please solve this fast within 30 minutes please please please Under a capital asset pricing model, if the market return increases by 10 percent, a

Please solve this fast within 30 minutes please please please

Under a capital asset pricing model, if the market return increases by 10 percent, a portfolio with a beta of 0.5 will:Single choice.

(1 Point)

experience a 10 percent increase in its return

experience a 7.5 percent increase in its return

experience no increase in its return

experience a 5 percent increase in its return

(b) What is the most you would pay today for a promise to repay you $6,000 at the end of 6 years if your opportunity cost is 12%?Single choice.

(2 Points)

$6,000

$8,567 approx.

$6,896 approx.

$3,042 approx.

(c) Suppose a person is investing $8,000 in Stock A and $24,000 in Stock B. Stock A and B have expected returns of 10% and 25%, respectively. The correlation coefficient between these two securities is 0.75. What is the expected return of the portfolio?Single choice.

(3 Points)

25%

21.25%

13.78%

15.94%

(d) What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years?Single choice.

(2 Points)

$5,000 approx.

$3,042 approx.

$9,042 approx.

$4,560 approx.

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