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Suppose the market risk premium is 9% and the risk free rate is 6% In a period where the market moved up by 30% during a single year, you observe the following risk and return data for mutual funds:
Fund A: return = 30% and beta = .8
Fund B: return = 34% and beta = 1.2
Fund C: return = 33% and beta = 1.0
Which fund has offered the best risk adjusted return?
Hint: The risk-adjusted return is the difference between the realized return (for example 30% for Fund A) and the expected return according to CAPM
You own $25,334 of Human Genome stock that has an assumed beta of 3.88. You also own $15,296 of Frozen Food Express (assumed beta = 2.76) and $7,170 of Molecular Devices (assumed beta = 0.76). What is the beta of your portfolio?
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Casello Mowing & Landscaping's year-end 2015 balance sheet lists current assets of $435,500, fixed assets of $550,500, current liabilities of $416,900, and long-term debt of $315,100. Calculate Casello’s total stockholders’ equity.
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