Problem 1. Risk & Return and the CAPM.
Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3%
Market Return =10.5%
Beta = 1.2
Problem 2. Holding Period Return
Based on the following information calculate the holding period return:
P0 = $10.00
P1 = $12.00
D1 = $1.22
Problem 3. Risk & Return and the CAPM.
Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3.5%
Market Return =10%
Beta = 1.08
Problem 4. Sources of Risk & Diversification - convertible bond.
Address each source of risk from the portfolio perspective and how diversification impacts them. APA FORMAT 275 WORDS
Problem 5. Portfolio Theory Risk.
What is portfolio theory and why is it important to investing behavior? APA FORMAT 275 WORDS