FIN 300 Quiz 5 Risk and Return Solutions 2019.pdf - FIN 300...

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FIN 300 Quiz 5 Risk and Return Solutions1 & 2.Terry Dactel is considering the purchase of an asset having thefollowing cash flows:KiProb20.40810100 .4010.50500 .50-30.10 -3-401600 .10160.00Exp. value 10200.00std. dev. = 14.143.Polly Khan is trying to calculate the risk-free rate given the followinginformation: The current market rate of interest is 8%. Investor’s have beenrequiring a 10% annual return on Builtrite’s stock which has a beta of 1.5.What is the current risk-free rate?40.000
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Term
Fall
Professor
Olander
Tags
Normal Distribution, Standard Deviation, general purpose of the CAPM

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