The rate of return on the U.S. government treasury bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.06 . What is the required rate of return for a stock with a Beta 1.16?
Menger Corporation has a 0.4 probability of a return of 0.00, a 0.4 probability of a rate of return of 0.06, and the remaining probability of a 0.40 rate of return. What is the expected rate of return of Menger Corporation?
Hayek Corporation has a 0.4 probability of a return of -0.15, a 0.3 probability of a rate of return of 0.08, and the remaining probability of a 0.90 rate of return. What is the variance in the expected rate of return of Hayek Corporation?