Investment

Capital asset pricing theory asserts that portfolio returns are best explained by ________ risk.

  1. 👍 0
  2. 👎 0
  3. 👁 66
asked by Yvonne

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    In the Capital Asset Pricing Model, the market risk premium is estimated over a long period of time because: more data is always better than less. a longer holding period gives a more reliable estimate because it is, in effect, a

    asked by Mark on July 21, 2013
  2. Finance

    Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%. An investment analyst provides you with the following information: Stock beta Expected return A 1.33 12% B 0.7 10% C 1.5 14% D 0.66

    asked by MIchael on April 25, 2018
  3. Finance

    You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. The one stock has a beta of .80. What does the beta of the second stock have to be if you want the portfolio risk to equal that of

    asked by brandon on October 26, 2009
  4. Statistics, Finance

    If the distribution of returns for an asset has a variance of zero, then covariance of returns between that asset and the returns any other asset must equal zero. True or False

    asked by John on October 4, 2011
  5. Finance

    Consider the following two securities X and Y X y Return- 20.0% Return- 10.0% Standard Deviation- 20.0% Standard Dev 30% Beta- 1.50 Beta- 1.0 Risk-free asset Return- 5.0% Using the data from the table, what is the portfolio

    asked by matt on October 19, 2011
  6. calculating BETA

    I am having the most trouble with this. Any help or direction would be greatly appreciated. 1) You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.7 and the total

    asked by Holly on June 28, 2009
  7. finance

    Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two

    asked by ky on April 28, 2011
  8. Finance:capital budget

    I am suppose to write a 1400 word paper based on the purchase of three new trucks costing $30,000 each and $10,000 of equipment for each one, with the life expansion of the trucks to be 5 years by calculating the firms' required

    asked by gloria on July 28, 2011
  9. Investments/Portfolio Mgt

    How would the following be solved... Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal probabilities of 0.5. The alternative riskless investment in

    asked by Anna on November 10, 2008
  10. finance

    You are a risk manager that needs to hedge the IR risk on a portfolio of bonds. Your hedging instruments are futures and swaps. Discuss how you would go about mitigating sensitivity to changes in the interest rates. You may

    asked by sasi on April 4, 2015

More Similar Questions