Finance work for pavan1001 ONLY

alex2001

Main

Home >Homework Answsers >Business & Finance homework help

Find the average of the following returns: 20%; 50%.

[removed]	A.	35%
[removed]	B.	17.50%
[removed]	C.	34.20%

Find the return of a portfolio that is 34% Acme and the rest in Rand. Acme has a return of 22.3% and Rand has a return of 17.3%. Round your answer to the nearest tenth (so xx.x as an answer).

[removed]

You have a portfolio consisting of 50% Mead stock, 30% Mattel stock, and 20% Intel stock. Mead stock has a beta of .7; Mattel has a beta of .8; Intel has a beta of 1.40. You know that T-bills are returning 6% and the market risk premium (MRP) is 10%. Find the return of your portfolio.

[removed]	A.	15.67%
[removed]	B.	14.70%
[removed]	C.	11.22%

Bar Inc. is considering a project. The project s beta is 1.60. The T?bill rate is 5% and the market risk premium is 10%. Find the required return. If the expected return is 20%, do you accept it?

[removed]

13%; No

[removed]

13%; Yes

[removed]

21%; No

[removed]

21%; Yes

Find the standard deviation of the following returns: 20%; 50%. Assume this is a sample (not the population)

[removed]	A.	0.35
[removed]	B.	0.2121
[removed]	C.	0.045

Find the beta of a portfolio that is 25% Ajax and the rest in Rex. Ajax has a beta of 1.3 and Rex has a beta of 3.8. Round your answer to the nearest hundredth (so x.xx as an answer).

[removed]

Revlon is considering a new project. The expected return on the project is 20%. Revlon believes that the project has a beta of 1.80. The T-bill rate is 5% and the return on the S&P 500 (market) is 15%. Will Revlon take the project? Why or why not?

[removed]	A.	Yes. Expected return < required return
[removed]	B.	No. Expected return > required return
[removed]	C.	Yes. Expected return > required return
[removed]	D.	No. Expected return < required return