q5

The lower an asset's beta, ________.

Select one:

a.

the lower the expected return will be in an up market

b.

the more responsive it is to changing market returns

c.

the higher the expected return will be in a down market

d.

the less responsive it is to changing market returns

q2

Asset P has a beta of 1.1. The risk-free rate of return is 9 percent, while the return on the market portfolio of assets is 15 percent. The asset's required rate of return is ________.

Select one:

a.

15.6 percent

b.

6.6 percent

c.

6.0 percent

d.

25.5 percent