1 the risk premium for a security is based on which one of, Ask an Expert

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1. The risk premium for a security is based on which one of the following types of risk?

total

systematic

diversifiable

surprise

2. If the beta of COKE Co. is -0.23, risk-free rate is 3% and the market risk premium is 7%, calculate the expected rate of return for COKE stock:

2.08%

3.92%

4.61%

1.39%

3. You would like to invest $20,000 and have a portfolio expected return of 12 percent. You are considering two securities, A and B. A has an expected return of 18 percent and B has an expected return of 8 percent. How much should you invest in stock A if you invest the balance in stock B to achieve the 12 percent portfolio return?

$6,250

$5,500

$7,000

$8,000

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93054787

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