fbpx

Corporate FInace Assignment/ Professional Essay Writers

Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)

Don't use plagiarized sources. Get Your Assignment on
Corporate FInace Assignment/ Professional Essay Writers
Just from $13/Page
Order Now
Stock Expected Return Standard Deviation Beta
A 7.30% 15% 0.8
B 8.70 15 1.2
C 10.45 15 1.7

Gibbs' reflective cycle in nursing

Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 4.5%, and the market is in equilibrium. (That is, required returns equal expected returns.)

1. What is the market risk premium (rM – TRF)? Round your answer to one decimal place.

%

2. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.

3. What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.

%

4. What would you expect the standard deviation of Fund P to be?

a. Less than 15%.

b. Greater than 15%.

c. Equal to 15%.  Get Finance Help Today

Recent Blog Posts

No recent articles to show.

Other Blog Posts

What are the key elements of an essay

You may clearly understand what an essay is and have had the experience of writing a number. However, it is […]

Feb 25th, 2022

How to write a research paper fast

The day inevitably comes; you need to submit your assignment. You have been procrastinating on writing your paper until the […]

Feb 24th, 2022

220+ best humanities research paper topics

Choosing a paper topic can be a daunting task for any assignment. A student may face agony trying to come […]

Feb 24th, 2022

How to write a media analysis essay

The media is an integral part of modern society. Think of what would happen to the world if there were […]

Feb 23rd, 2022

Great tricks on how to write a hypothesis in 2022

A hypothesis is a statement that can be proven by scientific research. It proves the theory of action and reaction, […]

Feb 22nd, 2022

How to get better at math

Math is not difficult. However, it is complex and tough compared to other subjects and requires a little bit more […]

Feb 22nd, 2022