# (a) In CAPM framework, there are risks that are diversifiable. What are the non-diversifiable risks? (2...

###### Question:

(a) In CAPM framework, there are risks that are diversifiable. What are the non-diversifiable risks? (2 marks) (b) See table 1 below. With respect to the CAPM, which of the following asset would have the greatest impact on the expected return if there is a rise in the expected market return? (2 marks) Table 1 Asset Standard Deviation Beta Asset 1 22% 0.5 Asset 2 15% 1.2 Asset 3 20% 0.9 (c) Suppose the following information about a stock is known. It trades on the Hong Kong Exchange (HKEx). The current HK risk-free rate is 2.5% and the average historical annual return for HK stocks is 10%. The beta of the stock is 1.25. What is the expected return of the stock using the CAPM formula? (2 marks) (d) Consider a portfolio comprises two stocks, A and B (refer to table 2 below), with equal amount of money invested in each. Table 2 State Probability A B Boom 30% 15% 20% Bust 70% 5% 1% i. Compute the portfolio return in each state. ii. Compute the expected return for the portfolio. iii. Compute the standard deviation for the portfolio. (2 marks) (2 marks) (4 marks)

#### Similar Solved Questions

##### Point)A variable force F(x) in the positive x-direction is graphed in the accompanying figure. Find the work done by the force on a particle that moves fromx = 0 tox= 4(click on image to enlarge)Work Doneft-IbPreview My AnswersSubmit AnswersYou have attempted this problem 0 times_ You have 3 attempts remaining:
point) A variable force F(x) in the positive x-direction is graphed in the accompanying figure. Find the work done by the force on a particle that moves fromx = 0 tox= 4 (click on image to enlarge) Work Done ft-Ib Preview My Answers Submit Answers You have attempted this problem 0 times_ You have 3 ...
##### In the above problem, how much money will Janine have to accumulate in her company's $401(\mathrm{k}) \text { plan over the next } 40 \text { years in order to reach her retirement income goal? (Obj. } 5)$.
In the above problem, how much money will Janine have to accumulate in her company's $401(\mathrm{k}) \text { plan over the next } 40 \text { years in order to reach her retirement income goal? (Obj. } 5)$....
##### 1. Calculate the Amax of the following compounds using the Woodward-Fieser rules: 1. Calcula el Aner de los sigulentes compuestos usando Ias reglas de Woodward-Fieser: (Spts )
1. Calculate the Amax of the following compounds using the Woodward-Fieser rules: 1. Calcula el Aner de los sigulentes compuestos usando Ias reglas de Woodward-Fieser: (Spts )...
##### How do you simplify #sin(csc^-1(15/17))#?
How do you simplify #sin(csc^-1(15/17))#?...
##### 18. Radius and interval of convergence Xk-0 (3x)kb. Xk-o(31/4)k Xk_0 34d_ Xkzo (4t k2+4
18. Radius and interval of convergence Xk-0 (3x)k b. Xk-o(31/4)k Xk_0 34 d_ Xkzo (4t k2+4...
##### NC sets single-day record for virus hospitalizations Image: GettyWrite an equation with the smallest possible degree for the function graphed above: Preview
NC sets single-day record for virus hospitalizations Image: Getty Write an equation with the smallest possible degree for the function graphed above: Preview...
##### Three directors are up for election and the election is based on cumulative voting. It costs...
Three directors are up for election and the election is based on cumulative voting. It costs $200,010 to guarantee one seat on the board. The stock price is$10 per share. How many shares outstanding does the company have?...
##### On average, 2 customers go to the customer service desk at SAVE ON FOODS and asks,...
On average, 2 customers go to the customer service desk at SAVE ON FOODS and asks, "Do you have any toilet paper left?" during any 15 minute interval. In any given hour, what is the probability the Customer Service Desk gets exactly 5 requests for toilet paper? 0.0653 0.0361 0.0916 0.1333...
##### How do you multiply #2u ^ { 5} \cdot 3w ^ { 2} u ^ { 8} \cdot 7w#?
How do you multiply #2u ^ { 5} \cdot 3w ^ { 2} u ^ { 8} \cdot 7w#?...
##### Answers in red are wrong. A B Exercise 4.34 A fire recently destroyed a substantial portion...
answers in red are wrong. A B Exercise 4.34 A fire recently destroyed a substantial portion of Vaughn Company's production capacity. It will be many months before capacity can be restored. During this period, demand for the firm's products will exceed the company's ability to produce the...
##### WRITING ASSIGNMENT LEARNING OBJECTIVES QUESTION 1: IDENTIFY THE MAJOR ANTIGENS CLASSIFIED WITHIN THE OTHER BLOOD GROUP...
WRITING ASSIGNMENT LEARNING OBJECTIVES QUESTION 1: IDENTIFY THE MAJOR ANTIGENS CLASSIFIED WITHIN THE OTHER BLOOD GROUP SYSTEMS ANSWER:...
##### (References Draw structural formulas for an aldehyde or ketone and alkyl (or aryl) bromide that could...
(References Draw structural formulas for an aldehyde or ketone and alkyl (or aryl) bromide that could be used in a Grignard synthesis of the alcohol shown. OH CH2CH2CHCHCHE CH3 • You do not have to consider stereochemistry. • If there is more than one combination, draw only one. • Dra...
CH 15 Homework Send to Gradebook < Prev Question 3 View Policies Current Attempt in Progress Pharoah needs to borrow $8 million for an upgrade to its headquarters and manufacturing facility. Management has decided to borrow using a five-year term loan from its existing commercial bank. The prime ... 1 answer ##### 8. Suppose you used a 10mL volumetric pipette in lieu of the graduated cylinder in Question... 8. Suppose you used a 10mL volumetric pipette in lieu of the graduated cylinder in Question #5. a. Using that 10.00mL sample, you weigh this solution and find its mass is 10.0160 grams. What is the density of this 0.150M solution? Show work. b. How many grams of sodium carbonate (105.9888 g/mol) is ... 1 answer ##### Please explain in detail thanks x2 Find a minimum value for the radius of convergence of... please explain in detail thanks x2 Find a minimum value for the radius of convergence of a power series solution about xo for the equation 8(x2-1) 3*- *7 + y=0 x2 + +4 a) When xo = 0, p= 1 b) When Xo = 2, p= 1 c) When Xo = 0.5, p= 5... 1 answer ##### On December 31, the ledger of Davis Company contained the following account balances: Accounts Payable$...
On December 31, the ledger of Davis Company contained the following account balances: Accounts Payable $13,600 Fees Income$ 182,000 Accounts Receivable 6,000 Supplies 4,400 Accumulated Depreciation 8,400 Prepaid Rent 62,000 Cash 84,000 Rent Expense 9,200 Depreciation Expense 8,400 Supplies Expense...
##### List four major differences between deformation by twinning and deformation by slip relative to mechanism, conditions of occurrence, and final result.
List four major differences between deformation by twinning and deformation by slip relative to mechanism, conditions of occurrence, and final result....
##### Question 4 Not yet answeredMarked out of 5Flag questionWhich of the following nucleus is most stablea. 235Ub. 56Fe205Tid. 6Li
Question 4 Not yet answered Marked out of 5 Flag question Which of the following nucleus is most stable a. 235U b. 56Fe 205Ti d. 6Li...
##### APPENDIX [Sc 0dad &9i"ri"&ji"&9i'Sc 5St %D,oi'adi'aSt 10Se 35v c0-[,do-[ni &dr&ql*Sc 4 noalSt 15St 21S1 45/ doe]nr'&d&qi*3125/
APPENDIX [ Sc 0 dad &9i" ri"&ji"&9i' Sc 5 St %D ,o i'adi'a St 10 Se 35v c0-[,do-[ ni &dr&ql* Sc 4 noal St 15 St 21 S1 45/ doe] nr'&d&qi* 3125/...
##### During conductometric titration of HCl and NH4OH,when the entire acid is neutralised, further addition of ammoniumhydroxide does not cause any appreciable change in conductancebecause:a.Ammonium hydroxide being weak electrolyte is poorly ionised.b.The size of ammonium and hydroxide ions are too big tocontribute to conductance.c.The common ion effect supresses the ionisation.d.The mobility of both ammonium and hydroxide ions is too small tocontribute to conductance.
During conductometric titration of HCl and NH4OH, when the entire acid is neutralised, further addition of ammonium hydroxide does not cause any appreciable change in conductance because: a. Ammonium hydroxide being weak electrolyte is poorly ionised. b. The size of ammonium and hydroxide ions are t...
##### What is the overall order of the following reaction 2NO+Hz >N2 + 2H20 Ratér k po]Cz]...
What is the overall order of the following reaction 2NO+Hz >N2 + 2H20 Ratér k po]Cz]...
##### If a and b are non-collinear vectors and / = (x + 4yJa + (2x+Y + 1)b and B = (y-Zx + ZJa + (2x T 3y C I)b and find x and Y Such that 34 = 2B.
If a and b are non-collinear vectors and / = (x + 4yJa + (2x+Y + 1)b and B = (y-Zx + ZJa + (2x T 3y C I)b and find x and Y Such that 34 = 2B....
##### (10 points) The determinant of the matrix-8 A = 0 -6 ~1 -5 -8 6Hint: Find a good row or column and expand by minors.
(10 points) The determinant of the matrix -8 A = 0 -6 ~1 -5 -8 6 Hint: Find a good row or column and expand by minors....
##### PHY 221-Test 4 Problems: Show your work (diagrams, equations, mathematical manipulations, numerical substitutions, etc.) for all...
PHY 221-Test 4 Problems: Show your work (diagrams, equations, mathematical manipulations, numerical substitutions, etc.) for all problems to receive credit (no work- no credit). Place a box around your final answer. Include units with all mumerical answers and record answers with the appropriate num...
##### A liquid has a density of 0.636 g/mL. How many kg arethere in 867 cm3 of this liquid?round to 3 significant figures
A liquid has a density of 0.636 g/mL. How many kg are there in 867 cm3 of this liquid? round to 3 significant figures...
##### For Exercises (26) to (32): The following are all manifestations of the Cauchy-Schwarz Inequality_ In other words, we can show they are true because we can find a vector space V and an inner produet 011 V such that the conclusion ol the Cauchy-Schwarz Inequality is the idicated inequality. Your job is to prove these inequalities by finding the vector space V and the inner product on V, and then unwinding the conclusion of the Cauchy-Schwarz Inequality to obtain the indicated inequality:
For Exercises (26) to (32): The following are all manifestations of the Cauchy-Schwarz Inequality_ In other words, we can show they are true because we can find a vector space V and an inner produet 011 V such that the conclusion ol the Cauchy-Schwarz Inequality is the idicated inequality. ...
##### (1 point) Suppose that the matrix A has the following eigenvalues and eigenvectors: 4 = 2...
(1 point) Suppose that the matrix A has the following eigenvalues and eigenvectors: 4 = 2 with vi = and |_ G 12 = -2 with v2 = Write the solution to the linear system r' = Ar in the following forms. A. In eigenvalue/eigenvector form: x(t) (50) = C1 + C2 e e B. In fundamental matrix form: (MCO) =...
##### The concentration dependence of the osmotic pressure of solutions of a macromolecule at $20^{circ} mathrm{C}$ was found to be as follows: $$egin{array}{lllll} c /left(mathrm{g} mathrm{dm}^{-3} ight) & 1.21 & 2.72 & 5.08 & 6.60 \ mathrm{II} / mathrm{Pa} & 134 & 321 & 655 & 898 end{array}$$ Determine the molar mass of the macromolecule and the osmotic virial coefficient.
The concentration dependence of the osmotic pressure of solutions of a macromolecule at $20^{circ} mathrm{C}$ was found to be as follows:  egin{array}{lllll} c /left(mathrm{g} mathrm{dm}^{-3} ight) & 1.21 & 2.72 & 5.08 & 6.60 \ mathrm{II} / mathrm{Pa} & 134 & 321 & 65...
##### Which primates are considered Hominoids? How are they different from other primates?
Which primates are considered Hominoids? How are they different from other primates?...
##### A eryslal was analyzed using X-ray diflraclion with radiation from cobalt source. The observed angle was 11.70" , Delcrminc the distance between layers ol tle: crystal Elerucnl(pIJD 179229 154Mu71.187,41Wnre
A eryslal was analyzed using X-ray diflraclion with radiation from cobalt source. The observed angle was 11.70" , Delcrminc the distance between layers ol tle: crystal Elerucnl (pIJD 179 229 154 Mu 71.1 87,41 Wnre...
##### EXPERIMENTAL Procedure Port I: First Weck You will study thc rexctions ofthesix â‚¬ution s 4c. R"Ni Zn" , AdB" rani ILEsuIS Rccurd All obscnalionaslich initial colors_ Diccipitate (oratons dixsolution colida dungcx Tablc ofthe #itc-up 4unLAAATY [CionedenH Ir willba uscd Ucvclun schcme for scpruting dhese cuions, usine ICAECIIS Wdicu cllicicnt, comparc thetir didlctent Eationt sdc- bycidc cpanic Iabclcd Icst tubes perform the tcsts Wear gloves during all procedurs:Rclttion with dil
EXPERIMENTAL Procedure Port I: First Weck You will study thc rexctions ofthesix â‚¬ution s 4c. R"Ni Zn" , AdB" rani ILEsuIS Rccurd All obscnalionaslich initial colors_ Diccipitate (oratons dixsolution colida dungcx Tablc ofthe #itc-up 4unLAAATY [CionedenH Ir willba uscd Ucvclun sc...
##### What are the 4P's in Corporate Governance? Explain each item. Lastly, Is there a relationship between...
What are the 4P's in Corporate Governance? Explain each item. Lastly, Is there a relationship between Moral with that Mission and Vision? Elaborate them Thankyou so much....
##### MonthSelect your Jiawwer What type pattern exlsts In the data? Select Your Jiiswec (b1 Develop rel month moving average (hls tltne serle; Compute MSE und forecast for month requrred, round vourunsvcns to two declmal places Do not round Intermedlate Calculation; MSE: The forecast for month (c) Use compute the exponential smoothing values for the time series Compute MSE and forecast far month If requlred, round your answers two declmal places. Do not round intermediate calculation; MSE:The forecas
Month Select your Jiawwer What type pattern exlsts In the data? Select Your Jiiswec (b1 Develop rel month moving average (hls tltne serle; Compute MSE und forecast for month requrred, round vourunsvcns to two declmal places Do not round Intermedlate Calculation; MSE: The forecast for month (c) Use ...
Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below:             Sales (6,000 units at $40 per unit)............$240,000 Less variable costs: Dire...