Managerial Finance 13 HW questions

Please check the attached file it has 13 finance HW questions

These two of the questions to have some idea before you bid

1) Assume that the risk-­free rate, R , is currently 3% and that the market return, r , is currently 11%.
F m

a. Calculate the market risk premium.
b. Given the previous data, calculate the required return on asset A having a beta of 0.5 and asset B having a beta of 1.9.

2) You are considering three stocks long dash A, B, and C long dash for possible inclusion in your investment portfolio. Stock A has a beta of 1.1, stock B has a beta of 0.4, and stock C has a beta of negative 0.1.

a. Which stock is the most risky one? (Select the best answer below.)

1. Stock B
2. Stock A
3. Stock C

b. Which stock is the least risky one? (Select the best answer below.)

1. Stock C
2. Stock A
3. Stock B

b. If you felt that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio?

1. Stock B
2. Stock C
3. Stock A

c. If you anticipated a major stock market rally, which stock would you add to your portfolio? (Select the best answer below.)

1. Stock A
2. Stock C
3. Stock B