CHAPTER 10 Return and Risk: The Capital Asset Pricing Model (CAPM) Multiple Choice Questions I. DEFINITIONS PORTFOLIOS a 1. A portfolio is: a. a group of assets‚ such as stocks and bonds‚ held as a collective unit by an investor. b. the expected return on a risky asset. c. the expected return on a collection of risky assets. d. the variance of returns for a risky asset. e. the standard deviation of returns for a collection of risky assets. Difficulty level: Easy PORTFOLIO WEIGHTS
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Hand in your coursework to the student office on or 6. before the deadline and retain the receipt as proof of submission. Section A: Essay Questions (50%) Question 1: Discuss whether the Arbitrage Pricing Model is a better model than the Capital Asset Pricing Model in estimating a security’s expected return. Question 2: Do financial instrument traded in the money markets and the capital markets have the same characteristics? Give examples to explain. Question 3: ‘Market
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Sara Ramirez playing the role of Dr. Callie could have just announced her exit from Grey’s Anatomy as she recently sounded like she is making her way out of the show. After her playing the role of Dr. Callie for 12 years‚ Sara expressed her gratitude on Twitter in a way that it seemed that she is moving out of the character. Having proved her mettle for 12 years‚ fans are however not convinced of the fact that the phasing out of the character is for good‚ and are therefore freaked out at her sudden
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Sara Lawrence-Lightfoot’s argument discusses how “many people believe that to move up the ladder of success and achievement‚ they must forget the past‚ repress it‚ and relinquish it.” Although many people may think this‚ I believe that memories are what allow you grow and continue prosperity in your life‚ whether it be a personal experience or not‚ memories push people to grow based off of past mistakes and encounters. I disagree with this statement and believe that memories help people in their
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(10 points) Suppose CAPM works‚ and you know that the expected returns on Walmart and Amazon are estimated to be 12% and 10%‚ respectively. You have just calculated extremely reliable estimates of the betas of Walmart and Amazon to be 1.30 and 0.90‚ respectively. Given this data‚ what is a reasonable estimate of the risk-free rate (the return on a long-term government bond)? (Enter the answer with no more nor less than two decimal places‚ and leave off the % sign. For example‚ if your answer is 13
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trends. However‚ recent news reports indicate that size zero models are so obsessed with their size that they become anorexic. Being fascinated by the fashion industry myself‚ it is important to explore the question: “Why should or should not size zero models be allowed to walk on the catwalk?” Size zero models should not be allowed on the catwalk. They are a bad influence on teenage girls who desire to look like these size zero “role” models. Young girls who attempt a “zero” do not develop as they
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emerging as soon as counsellors started to train other counsellors (Bernard & Goodyear‚ 2009). Several different theoretical models have developed to clarify and support counselling supervision. The focus of early models of supervision had generally been based on counselling theories (such as Cognitive Behavioural Therapy‚ Adlerian or client-centred)‚ but these orientation-specific models have begun to be challenged as supervision has many characteristics that are different to counselling. Competency as
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511. Analyze Principles‚ Scope and purpose of professional supervision. Professional supervision is a formal arrangement which enables each member of staff to discuss their work regularly with another experienced practitioner. The experienced practitioner known as supervisor facilitates the discussion with less experienced member of staff‚ the supervisee. All clinical supervision has three core functions 1. Provide support to staff in their work. 2. Promote personal and professional development
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for the fiat 500 car model. Notoriously this car has been aimed at the female market for its compactness and stylish features. The advertisement features a woman aged between 25 and 35‚ well dressed standing adjacent to the vehicle. The young woman is drinking from an old-fashioned‚ glass bottle of milk. She holds the bottle in her right
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Looking back at my childhood I wonder why I loved construction up to such an extent. To balance my lopsided addiction to construction‚ I joined a ham radio club. I enjoyed learning about circuits and designing them. I do not remember how and when my model cities were replaced with an electronics lab in my basement. I again fell in love with construction‚ although of a different kind. ---- need to come up with a way to creatively incorporate
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