Multiple Choice
The risk-free rate is 5.4% and the expected return on the market is 11.2%. Stock A has a beat of 1.3. For a given year, Stock A returned 14.8% while the market returned 12.7%. The systematic portion of the return was ________ and the unsystematic portion was _________.
A) 1.95%; -0.09%
B) 2.85%; 1.07%
C) 3.27%; 1.03%
D) 2.47%; -1.67%
E) 2.25%; 1.23%
Correct Answer:
Verified
Correct Answer:
Verified
Q37: Explain the primary goal of portfolio diversification
Q85: The current risk-free rate is 6.2 percent.
Q87: Which of the following stocks has
Q88: According to the CAPM, the expected return
Q89: A stock has a beta of 1.30
Q91: <span class="ql-formula" data-value="\begin{array}{c}\begin{array}{c}\underline{\text { Year }} \\1
Q92: To combine the risk-free asset with the
Q93: The expected return of the market is
Q94: You own a portfolio equally invested in
Q95: The cost associated with diversification is:<br>A) a