Multiple Choice
The Rotor Co. stock is expected to earn 14% in a recession,6% in a normal economy,and lose 4% in a booming economy. The probability of a boom is 20% while the probability of a normal economy is 55% and the chance of a recession is 25%. What is the expected rate of return on this stock?
A) 6.00%
B) 6.72%
C) 6.80%
D) 7.60%
E) 11.33%
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Draw the SML and plot asset C
Q17: Diversification will not lower the _ risk:<br>A)
Q18: Quantpiks has been a hot stock the
Q19: You have a portfolio consisting solely of
Q20: You recently purchased a stock that is
Q22: You have a $1,000 portfolio which is
Q23: As we add more securities to a
Q24: The elements in the off-diagonal positions of
Q25: A stock with a beta of zero
Q26: Kali's Ski Resort,Inc. stock is quite cyclical.