Long-term-government securities maybe preferred over short-term government securities by analysts because which of the following statement is most accurate? A. Shares are also a form of long term investment B. They are a preferred form of investment C. Shares are also a form of long term investment and therefore their returns are similar. D. They are considered more risk free E. None of the options provided. 2.For a stock with a measured(levered) beta of 1.2 estimated its asset beta if the tax rate is 30% and the D/E ratio is 80%, which of the following is correct? A.0.77 B. 0.94 C. 0.83 D.1.5 E.None of the options provided.

11. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows:     CAPM Elements Value Risk-free rate (rRFrRF) ________?     Market risk premium (RPMRPM) __________?  Happy Corp. stock’s beta  ___________? Required rate of return on Happy Corp. stock   ___________?   An analyst believes that inflation is going to increase by 3.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML.

Do solve all parts  A. What risk premium do you use? Why? B. Why is the geometric mean lower than the arithmetic mean for both bonds and bills? C. If you had to use a risk premium with the longer periods, what biases will the investor have?

If you believe the stock market may crash and would like to reduce your portfolio risk, what Beta should you aim for? Select one: a. Beta of 1-2 b. Low Beta shares c. Extremely high Beta shares d. Beta values do not matter

6. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would select (do not include names of mutual funds or stocks, just overall types of investments.)?

Historical evidence indicates that stocks Seleccione una: a. underperform bonds. b. outperform bonds. C. Are less risky than bonds. d. have the same return as bonds.

Please help correctly all or skip pls

Which statement is false? O A. As the term of a bond approaches zero, the price approaches kar. O B. For corporate and government bonds, the coupon payments amortize the princi OC. Overall, bond prices are less volatile than stock prices. O D. The coupon on a bond is expressed as a percentage of face value. O E. Corporate bonds can be bought and sold in the secondary market. Reset Selection

1) Please indicate whether the following statements are true or false. In case of a false statement, briefly specify why the statement is false. 1. A real asset is different from a financial asset because a real asset must take a physical form. 2. In the financial market, an investor buys financial securities from dealers at the ask price and sells financial securities to dealers at the bid price. 3. Mankowitz portfolio theory assumes average investors have a utility function as an increasing and concave function of future portfolio return. 4. According to CAPM, all well-diversified portfolios on the capital market line have the same Sharpe ratio. 5. The Markowitz portfolio theory assumes that investors hold homogenous expectations about risk and returns of financial securities.

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