A stock has returns of 4 percent 19 percent -26 percent and 16 percent for the past 4 years. Based on this information what is the 95
percent probability range for any one given year?
-26.2 to 36.3 percent
-17.3 to 23.8 percent
-9.0 to 12.4 percent
-37.8 to 44.3 percent
-58.4 to 64.9 percent
Your portfolio has a beta of 1.24. The portfolio consists of 14 percent U.S. Treasury bills 31 percent in stock A and 55 percent in stock B.
Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?
1.10
1.41
1.30
0.55
1.69
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a
beta of 1.28?
9.84
12.80
16.64
15.80
6.84