If investors’ aversion to risk increased, would the risk premium on a highbeta stock increase by more or less than that on a low-beta stock? Explain.

Why might other investors prefer low-dividend-paying stocks?

Describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier.  Additionally, explain how might the magnitude of the market risk premium impact people's desire to buy stocks?

Based on the results from Fama and French, does it matter for the Efficient Markets Hypothesis if value stocks are riskier than growth stocks, or if growth stocks are riskier than value stocks? Why or why not?

An individual stock with a beta greater than 1.0 is   a. Same as risky as the market b. Riskier that the market c. Less risky as the market d. It has no relationship with the market

Which of the following statements concerning the Efficient Market Hypothesis is correct? Select one: a. Stock market prices are based on speculation not on underlying information   b. New information that confirms investor expectations should change stock prices c. Stock prices should slowly respond when unexpected information becomes available d. Careful research can help investors earn abnormal profits e. Your return on investment should reflect the riskiness of your portfolio

Discuss how to determine the risk or beta of a stock, the required rate of return of a stock and the value of a stock.  How do you determine if a stock has high or low or average risk when compared to the S&P 500? How do you determine if a stock is overpriced, underpriced or fairly priced? Explain and Discuss.

The buyer of a call option on stock benefits if the underlying stock price rises or if the volatility of the stock's price increases. Select one: True False

Discuss the impact of investor sentiment on stock returns conditional on economic conditions?

b) "If a stock had high returns so far, it will have low returns in the future". Discuss whether this statement is true or false, based on the knowledge of the different theories and models out there.