Question: 3. Consider the following table, which gives a security analyst's expected return on one stock for two particular market returns: Market return Stock 4% 10%


3. Consider the following table, which gives a security analyst's expected return on one stock for two particular market returns: Market return Stock 4% 10% 12% 14% Then what is the beta of the stock A) 0.5 B) 1.5 C) 2 D) 2.5 E) None of the above 1. Consider two investors and two securities: A B 200 400 Securities Market Value Investor Wealth 1 2 150 450 Assume there are only two securities (A and B) and two investors in the market, then how much will investor 1 invest in security A if the market portfolio is efficient and both investors are equally smart? A) 50 B) 75 C) 100 D) 175 E) none of the above
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