Multiple Choice
Suppose that over the last 30 years,company ABC has averaged a return of 10%.Over the same period,the Treasury bond rate has averaged 3%.The current estimate of the Treasury bond rate is 5%.Using the historical approach,what is the estimate of ABC's expected return.
A) 13.0%
B) 12.5%
C) 12.0%
D) 11.0%
Correct Answer:
Verified
Correct Answer:
Verified
Q70: Portfolio weights must sum to _.<br>A) 1<br>B)
Q71: According to the CAPM (capital asset pricing
Q72: NARRBEGIN: Exhibit 7-2<br>Exhibit 7-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2250/.jpg" alt="NARRBEGIN:
Q73: The intercept of the security market line
Q74: What type of mutual fund managers do
Q76: If the market portfolio has an expected
Q77: NARRBEGIN: Exhibit 7-1<br>Exhibit 7-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2250/.jpg" alt="NARRBEGIN:
Q78: If you believed a stock was going
Q79: The risk-free rate is 5% and the
Q80: NARRBEGIN: Exhibit 7-3<br>Exhibit 7-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2250/.jpg" alt="NARRBEGIN: