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gulaghasi [49]
3 years ago
5

If a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%,

then:_____
a. Treasury bills are offering a 7% yield.
b. The portfolio beta is greater than 1.0.
c. The portfolio beta equals 1.67.
d. The investor's portfolio contains many defensive stocks.
Business
1 answer:
goblinko [34]3 years ago
7 0

Answer:

B

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Market beta is represented by 1. If a portfolio has a beta that is higher than 1, it means that it is more risky than the market portfolio and investors would demand a higher return than the market portfolio

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Answer: OPTION A

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Orange Corporation has budgeted sales of 26000 ​units, targeted ending finished goods inventory of 6000 ​units, and beginning fi
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Answer:

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Explanation:

The computation of the number of units produced next year is shown below:

Number of units produced next year = Ending finished goods inventory units + budgeted sales units - beginning finished goods inventory units

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Answer:

Explanation:

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Answer:

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