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1. Which of the following lists the series in ascending order (lowest first) of volatility over the past 90+ years?

A. Small stocks, large stocks, government bonds

B. Small stocks, government bonds, large stocks

C. Large stocks, small stocks, government bonds

D. Large stocks, government bonds, small stocks

E. Government bonds, large stock, small stocks

2. Josh has a portfolio of two stocks, Stocks A has a Beta of 2.4 and stock B has a Beta of 0.9. Funds are allocated with 60% in Stock A and 40% in Stock B. if the T-bill rate is 4%, and the market expected return is 13%, what is the required return on the portfolio?

18.58%

19.12%

19.66%

20.20%

20.74%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92841852

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