1. What are the best sectors to invest in the US right now, given the current economic conditions? Rank the sectors in the order of allocation % and explain in detail your reasoning.
2. With respect to $388.38 = PV (I, N, 0, FV) in Excel, what does the $388.38 represent? (Note: The third element is a zero.) How do I explain the $338.38 to a colleague?
3. If the expected rate of return on the market portfolio is 15% and T-bills yield 6%, what must be the beta of a stock that investors expect to return 12%? (Round your answer to 4 decimal places.)