Q7 7) The historical nominal returns for stock A were -8 percent, +10 percent, and +22 percent.The nominal returns for the market portfolio were +6 percent, +18 percent, and 24 percentduring this same time. Calculate the beta for stock A.A) 1.64B) 0.61C) 1.00D) 0.508) Which of the following is a statement of semi-strong form efficiency?I) Stock prices will adjust immediately to public information.II) Stock prices reflect all information.III) Stock prices will adjust to newly published information after a long time delay.A) I onlyB) II onlyC) II and III onlyD) III only9) A put option on ABC stock currently sells for $4.00. The exercise price and the stock priceis $60. The put option has a delta of 0.5. If within a short period of time the stock price increasesto $60.10, what would be the change in the price of the put option?A) Increases by $0.05B) Decreases by $0.05C) Increases by $0.10D) Decreases by $0.10

Stock beta is tells the volatility of a given stock with respect to the overall market return. It…

7) The historical nominal returns for stock A were -8 percent, +10 percent, and +22 percent. The nominal returns for the market portfolio were +6 percent, +18 percent, and 24 percent during this same time. Calculate the beta for stock A. A) 1.64 B) 0.61 C) 1.00 D) 0.50

7) The historical nominal returns for stock A were -8 percent, +10 percent, and +22 percent. The nominal returns for the market portfolio were +6 percent, +18 percent, and 24 percent during this same time. Calculate the beta for stock A. A) 1.64 B) 0.61 C) 1.00 D) 0.50

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

7) The historical nominal returns for stock A were -8 percent, +10 percent, and +22 percent.
The nominal returns for the market portfolio were +6 percent, +18 percent, and 24 percent
during this same time. Calculate the beta for stock A.
A) 1.64
B) 0.61
C) 1.00
D) 0.50
8) Which of the following is a statement of semi-strong form efficiency?
I) Stock prices will adjust immediately to public information.
II) Stock prices reflect all information.
III) Stock prices will adjust to newly published information after a long time delay.
A) I only
B) II only
C) II and III only
D) III only
9) A put option on ABC stock currently sells for $4.00. The exercise price and the stock price
is $60. The put option has a delta of 0.5. If within a short period of time the stock price increases
to $60.10, what would be the change in the price of the put option?
A) Increases by $0.05
B) Decreases by $0.05
C) Increases by $0.10
D) Decreases by $0.10

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