Multiple Choice
A portfolio is expected to return 15 percent in a booming economy,12 percent in a normal economy,and lose 9 percent if the economy falls into a recession.The probability of a boom is 25 percent while the probability of a recession is 15 percent.What is the overall portfolio expected return?
A) 5.42%
B) 6.83%
C) 9.60%
D) 10.05%
E) 10.81%
Correct Answer:
Verified
Correct Answer:
Verified
Q53: KNF stock is quite cyclical.In a boom
Q54: You want your portfolio beta to be
Q55: The stock of Martin Industries has a
Q56: Well-diversified portfolios have negligible:<br>A)systematic risks.<br>B)unsystematic risks.<br>C)expected returns.<br>D)variances.<br>E)covariances.
Q57: Stock A has a beta of .92
Q59: The intercept point of the security market
Q60: Which one of the following is an
Q61: A portfolio contains four assets.Asset 1 has
Q62: PPO stock has a beta of 1.12
Q63: A portfolio contains two assets.The first asset