please answer these two fast: 26. What is the most likely correlation coefficient between a stock-index mutual fund and the S&P 500?     -1     .5     0     1 25. Market risk is also called ________ and ________.     unique risk; diversifiable risk     systematic risk; nondiversifiable risk     unique risk; nondiversifiable risk     systematic risk; diversifiable risk

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.93. Year 2018 2019 2020 2021 2022 Fund -16.408 25.10 13.20 6.20 -1.68 Market -32.50% 20.30 11.80 8.00 -3.20 Jensen's alpha Information ratio Risk-Free 38 4 Calculate Jensen's alpha for the fund, as well as its information ratio. Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places. 5 %

Step by step explaination (use attached diagram)   This question relates to Diagram 6 from the diagrams, which shows the probability distributions of returns for Shares N, P and Q. In which share would a risk-averse investor be most likely to invest? Select one: a. Share N b. Share P c. Share Q d. We need more information about the investor's risk tolerance to determine which share the investor would prefer.

A stock or mutual fund with a ____ beta means the security goes up when the market as a whole goes up ; a ____ beta indicates the opposite. a. positive; negative b. zero; negative c. negative; positive d. positive; zero

1. What effect does increasing inflation expectations have on the required returns of investors in common stock? 2. Explain the specific relationship between risk and reward and why this relationship must be true.

Consider the information on the market, the risk-free asset, and a mutual fund. You want to build a two-asset portfolio comprising the market portfolio and the risk-free asset such that your portfolio beta is the same as the mutual fund. What is the portfolio weight on the market in your portfolio? Mutual Fund Market Risk Free E(k) 11.1% 8.5% 2.0% Beta 1.4 1 0

Aa.1

How can a mutual fund manager who follows a momentum trading strategy expect to earn above - average return  1. Provided the stock price has been decreasing below the mean reversion point and other investors follow a mean reversion strategy the fund manager is likely to earn an above average return  2. If the fund manager follows a momentum strategy and buys a stock as the price is increasing while other investors follow a mean reversion strategy, then it is likely the stock price will continue to rise  3. Provided the stock price have been rising above the mean reversion point and other investors follow a mean reversion strategy, the fund manager is likely to earn an above average return  4. If the fund manager follows a momentum strategy and buys a stock as the price is increasing and other investors also follow a momentum strategy, then it is likely the stock price will continue to rise

27. You have developed the following data on three stocks:Stock Standard Deviation BetaA 0.15 0.79B 0.25 0.61C 0.20 1.29 If you are a risk minimizer, you should choose Stock ____ if it is to be held in isolation and Stock ____ ifit is to be held as part of a well-diversified portfolio.a. A; Ab. A; Bc. B; Ad. C; Ae. C; B

You have developed the following data to examine the impact of portfolio diversification. Which scenario seems to be out of place? # of stocks in the portfolio Diversifiable Risk Market Risk L. 2 stocks M. 20 stocks N. 30 stocks O. 60 stocks P. 100 stocks ΟΝ OL O M P 0.15 0.07 0.11 0.08 0.06 0.20 0.20 0.20 0.20 0.20