Answer:
E) beta
Explanation:
The security market line (SML) can be regarded as a line that is drawn on a chart which represent the capital asset pricing model. And it allows to know the expected of security which can be attributed to the function of non-diversifiable risk as well as systematic
.It should be noted that The security market line is a positively sloped straight line that displays the relationship between expected return and beta
Answer:
Explanation:
if the question is select multiple answers then both A and C. if it is just one answer then A.
Answer:
Answer is given below.
Explanation:
The given graph shows the demand and supply curves.
At the price of $3.50, we can see that the demand will be less than 3 units, which means, that the demand will be only 2 units.
Answer:
SD = 0.03666 or 3.666%
Explanation:
To calculate the standard deviation of the investment, we must first calculate the expected or mean return of the investment. The expected or mean return can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability of return A, return B and so on
r = 0.2 * 0.16 + 0.3 * 0.12 + 0.4 * 0.08 + 0.1 * 0.04
r = 0.104 or 10.4%
The formula to calculate the standard deviation of a stock/investment is as follows,
SD = √pA * (rA - r)² + pB * (rB - r)² + ... + pN * (rN - r)²
SD = √0.2 * (0.16 - 0.104)² + 0.3 * (0.12 - 0.104)² + 0.4 * (0.08 - 0.104)² + 0.1 * (0.04 - 0.104)²
SD = 0.03666 or 3.666%