The expected return for an individual asset is the sum of expected returns in each state of the world multiplied by the probability of each state of the world occurring. Group of answer choices True False

Which of the following is not a variable in the basic present value equation? Multiple Choice   Number of payments.   Future value.   Discount rate.   Present value.   Time horizon.

You are given the following data about Asset A and Asset B.                                                                           Asset A                 Asset B                               Expected returns                    8.6%                   7.9%                               Standard Deviation                3.8%                   4.6%                 Assuming that an investor is to choose between Asset A or Asset B, explain which asset               a rational investor will choose.     c) With the use of a diagram, explain why an investor will always choose a point on the              SML line.

vuunyiuunu assumption of "y. Q2. How portfolio return and risk is calculated? Explain the role of correlation among asset in portfolio? Why this correlation is important?

The expected return of a portfolio is simply the weighted average of the expected returns for the individual assets within the portfolio.  Group of answer choices True False

The expected value of an investment: Answer a. Is what the owner will receive when the investment is sold b. Is the sum of the payoffs c. Is the probability-weighted sum of the possible outcomes d. Cannot be determined in advance

A net present worth equation is used to solve for a ROR by setting the net present worth equation Equal to: Select one: a. -1 b. -10 c. zero d. 1

Investment returns can take two forms: state and explain each

How is the standard deviation of returns calculated?

Explain the difference between return of investment versus return on investment.