CAPM - Question 1 0.1 out of 0.1 points An overpriced...

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Question 1 0.1 out of 0.1 points An overpriced security will plot Answer Selected Answer: Correct Answer: Question 2 0.1 out of 0.1 points Given the following two stocks A and B Security A B If the expected market rate of return is 0.09 and the risk-free rate is 0.05, which security would be considered the better buy and why? Answer Selected Answer: Correct Answer: Question 3 0.1 out of 0.1 points Which statement is not true regarding the Capital Market Line (CML)? Answer
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Correct Answer: Question 4 0.1 out of 0.1 points You invest $600 in a security with a beta of 1.2 and $400 in another security with a beta of 0.90. The beta of the resulting portfolio is Answer Selected Answer: Correct Answer: Question 5 0.1 out of 0.1 points A security has an expected rate of return of 0.10 and a beta of 1.1. The market expected rate of return is 0.08 and the risk- free rate is 0.05. The alpha of the
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This note was uploaded on 03/26/2012 for the course FINS 2624 taught by Professor Hneryyip during the Three '10 term at University of New South Wales.

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CAPM - Question 1 0.1 out of 0.1 points An overpriced...

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