Question 7 (2 points) Relative to the world equity market portfolio, investors that hold only the...

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Question 7 (2 points) Relative to the world equity market portfolio, investors that hold only the Canadian equity market would likely: None of the above Expose themselves to diversifiable risk Decrease their exposure to volatility Increase their Sharpe Ratio Question 8 (2 points) You decide to buy a stock for the new year. For the past 6 years, the price has been $120.51, $155.05, $140.05, $89.6, $202.32, and $150.60, for the years 2015-2020. What is the standard deviation of the returns of this stock? 43.27%. 55.56%. 65.78%. 60.23%. Question 9 (2 points) The Zumwalt Company just announced that they will pay a dividend of $2.25 per share next year. They also stated that they expect a dividend growth of 5% every year from the current expected dividend. If the company's WACC is 13%, its beta is 1.15, the market risk premium is 5.5%, and the risk-free rate is 4%. What is the company's stock price today? $46.57 $42.25 $29.68 $28.13 Question 10 (2 points) A portfolio contains four assets. Asset 1 has a beta of 0.7 and comprises 35% of the portfolio. Asset 2 has a beta of 1.2 and comprises 29% of the portfolio. Asset 3 has a beta of 0.9 and comprises 10% of the portfolio. Asset 4 has a beta of 1.1 and comprises the remaining 26% of the portfolio. If the risk-free rate is expected to be 3% and the market risk premium is 8%, what is the beta of the portfolio, the expected return on the portfolio and the market? Beta is 0.975, expected portfolio return is 7.80%, and expected market return is 8.00%. Beta is 0.975, expected portfolio return is 10.80%, and expected market return is 11.00%. Beta is 0.969, expected portfolio return is 10.75%, and expected market return is 11.00%. Beta is 0.969, expected portfolio return is 10.66%, and expected market return is 11.00%. Question 7 (2 points) Relative to the world equity market portfolio, investors that hold only the Canadian equity market would likely: None of the above Expose themselves to diversifiable risk Decrease their exposure to volatility Increase their Sharpe Ratio Question 8 (2 points) You decide to buy a stock for the new year. For the past 6 years, the price has been $120.51, $155.05, $140.05, $89.6, $202.32, and $150.60, for the years 2015-2020. What is the standard deviation of the returns of this stock? 43.27%. 55.56%. 65.78%. 60.23%. Question 9 (2 points) The Zumwalt Company just announced that they will pay a dividend of $2.25 per share next year. They also stated that they expect a dividend growth of 5% every year from the current expected dividend. If the company's WACC is 13%, its beta is 1.15, the market risk premium is 5.5%, and the risk-free rate is 4%. What is the company's stock price today? $46.57 $42.25 $29.68 $28.13 Question 10 (2 points) A portfolio contains four assets. Asset 1 has a beta of 0.7 and comprises 35% of the portfolio. Asset 2 has a beta of 1.2 and comprises 29% of the portfolio. Asset 3 has a beta of 0.9 and comprises 10% of the portfolio. Asset 4 has a beta of 1.1 and comprises the remaining 26% of the portfolio. If the risk-free rate is expected to be 3% and the market risk premium is 8%, what is the beta of the portfolio, the expected return on the portfolio and the market? Beta is 0.975, expected portfolio return is 7.80%, and expected market return is 8.00%. Beta is 0.975, expected portfolio return is 10.80%, and expected market return is 11.00%. Beta is 0.969, expected portfolio return is 10.75%, and expected market return is 11.00%. Beta is 0.969, expected portfolio return is 10.66%, and expected market return is 11.00%.