b. Strong c. Weak d. Perfect _ form of the EMH, you believe that stock pr only t

Question

b. Strong c. Weak d. Perfect _ form of the EMH, you believe that stock pr only to in 24. If you believe in the ehect all relevant information including information that is available a. Semi-strong b. StronB c. Weak d. Perfect 25. Behavioralists point out that even if market prices are not be a. Allocationally efficient; technically efficient b. Fundamentally efficient; technically efficient c. Technically efficient; informationally efficient d. Informationally efficient; allocationally efficient 26. If behavioralists are right in their projections we may want to con I. greater taxes on trading Il. more government involvement in allocating capital ?.requiring more managers to obtain psychological training a. I only b. III only c. I and II only d. I, II and ? 27, The Dow Theory is a technique that attempts to identify lust prices

Explanation / Answer

7)As per CAPM ,Expected return=Rf+(Rm-Rf)×beta

=3.5+(15.6-3.5)×0.8=3.5+12.1×.8=13.18

8)Expected Return=10+(15-10)×2=10+10=20%

9)As per CAPM , Epected return=Rf+(Rm-Rf)×beta

12.5=10+(15-10)×beta

2.5=5×beta

Beta=0.5

6) Standard deviation of portfolio=[.6^2×30^2+.4^2×18^2+2×.6×.4×(-1)](take square root of whole)

=324+51.84-.48=square root of 375.36=19.37%

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