+1-415-315-9853

info@mywordsolution.com

## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

1. Let the multi-factor APT with two factors.  Risk premiums on factor 1 and factor 2 portfolios are respectively 5% and 3%.  Stock A has beta of 1.4 on factor 1, and beta of 0.5 on factor 2.  Expected return on stock A is 14%.  If no arbitrage opportunities exist, risk-free rate of return is __________.

A) 5.0%

B) 5.5%

C) 6.0%

D) 6.5%

2. Security A has expected rate of return of 12% and beta of 1.10.  Market expected rate of return is 8% and risk-free rate is 5%.  Alpha of stock is __________.

A) -1.7%

B) 3.7%

C) 5.5%

D) 8.7%

3. Risk-free rate is 4%.  Expected market rate of return is 11%.  If you expect stock X with a beta of .8 to present a rate of return of 12 percent, then you must __________.

A) Buy stock X because it is overpriced

B) Buy stock X because it is underpriced

C) Sell short stock X because it is overpriced

D) Sell short stock X because it is underpriced

4. Asset A has the expected return of 15% and Sharpe ratio of .4.  Asset B has expected return of 20% and Sharpe ratio of .3. Risk-averse investor would favour a portfolio using risk-free asset and _______.

A) Asset A

B) Asset B

C) No risky asset

D) Can't tell from the data given

5. Expected return on market portfolio is 15%.  Risk-free rate is 8%.  Expected return on SDA Corp. common stock is 16%.  Beta of SDA Corp. common stock is 1.25.  Within context of capital asset pricing model, __________.

A) SDA Corp. stock is underpriced

B) SDA Corp. stock is fairly priced

C) SDA Corp. stock's alpha is -0.75%

D) SDA Corp. stock alpha is 0.75%

Accounting Basics, Accounting

• Category:- Accounting Basics
• Reference No.:- M917084

Have any Question?

## Related Questions in Accounting Basics

### Accountingthe accepted microsoft office versions for this

Accounting The accepted Microsoft Office versions for this assignment are Microsoft Office 2013 (for PC) and Microsoft Office for Mac 2011 (for Macintosh). Students may use a more recent version if available. Select a pe ...

### Current designsas a service to its customers current

CURRENT DESIGNS As a service to its customers, Current Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, C ...

### You are starting your own internet business you decide to

You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business ...

### Del gato clinic deposits all cash receipts on the day when

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) \$14,287 debit balance. Del Gato ...

### Audit report modificationsthe final paper will be based on

Audit Report Modifications The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit ...

### Ace lawn care module - mini practice problemjim graham

Ace Lawn Care Module - Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now t ...

### Assignmentparticipation topic mandatoryinventory additional

Assignment Participation Topic (Mandatory) Inventory Additional Lecture Notes Class, Let me see if I can work up an example of how to calculate and use the different inventory methods. Let us use the following informatio ...

### 1 identify which of the following statements is truea a

1. Identify which of the following statements is true. A. A partnership exists as long as there are at least two individuals or entities engaged in the active conduct of a trade or business or a financial operation, and ...

### Introductory accounting assignment question 1 - the

INTRODUCTORY ACCOUNTING ASSIGNMENT QUESTION 1 - The information given below was extracted from the books of KAISER TRADERS. REQUIRED: 1.1: Compare the Bank Statement with the Cash Receipts Journal and Cash Payments Journ ...

### Write think about a specificissue or policy that you are

Write: Think about a specificissue or policy that you are interested in and/or that has impacted you personally. Use the assigned resources that are provided for this journal to gather information about the goals and pro ...

• 4,153,160 Questions Asked
• 13,132 Experts
• 2,558,936 Questions Answered

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

### Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

### Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

### Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

### Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

### Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen