A security with a beta of 1.0 earned a return of 15% last year when the market portfolio earned a return of only 9%. Begin your answer with Consistent or Inconsistent followed by your explanation.

Give typing answer with explanation and conclusion

Solve this practice problem in the 2 pictures below

Expected return (Kj)

The manager has 5 employees whose combined salaries through the end of this year are $300,000. If he expects to give an average raise of 7% each year. If the interest rate is nine percent per year, calculate the present worth of the employees' salaries over the next five years.

Suppose the​ risk-free return is 3.5% and the market portfolio has an expected return of 11.9% and a volatility of 12.9% Merck​ & Co.​ (Ticker: MRK) stock has a 20.8% volatility and a correlation with the market of 0.065. a. What is​ Merck's beta with respect to the​ market? b. Under the CAPM​ assumptions, what is its expected​ return?

Stock XYZ has a beta of 1.3 and an expected return (rs) of 6.5%. The risk-free rate (TRF) is currently 3.0%. What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free asset? Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)

A stock has a beta of 1.32 and an expected return of 12.8 percent. The risk-free rate is 3.6 percent. What is the slope of the security market line? Can the calculator and excel solution be provided?

Give typing answer with explanation and conclusion  The return on the Tarheel Corporation stock is expected to be 14 percent with a standard deviation of 9 percent. The beta of Tarheel is 0.9. The risk-free rate is 6 percent, and the expected return on the market portfolio is 16 percent. What is the probability that an investor in Tarheel will earn a rate of return less than the required rate of return? Assume that returns are normally distributed. Use Table V to answer the question. Round z value in intermediate calculation to two decimal places. Round your answer to the nearest whole number.

You have the following data on the securities of three firms. If the risk-free rate last year was 3%, and the return on the market was 11%, which firm had the best performance on a risk-adjusted basis? Use CAPM to calculate expected returns and compare them with actual returns. Return last year Beta Firm A 10% 1.12 Firm B 11% 1.0 Firm C 12% 0.65 O Firm B O Firm C O There is no difference in performance on a risk-adjusted basis O Firm A