1) Can a person with rational expectations expect the price of a share of google to rise by 8% in next month? 2) what is the best financial instrument to offset market risk exposure and from market volatility? WHY?

An investor buys a stock if price rises 5% from the 250-day low and shorts a stock if price falls 5% from the 250-day high. What is this strategy called? Will it work if the market is efficient? Explain why

E2

Given the dramatic decrease in a company's stock price last year, what would be the impact on the firm's asset beta, equity beta, and their WACC? Explain your responses!

Is the following sentence true or false? Please explain.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             The cost of new equity (re) could possibly be lower than the cost of reinvested earnings (rs) if the market risk premium, risk-free rate, and the company's beta all decline by a sufficiently large amount.

20. When we are studying the stock price reactions to earnings announcement, why do we need to know analysts’ earnings forecast consensus?

risk-free rate have to be if they are correctly priced? (See Problems 19 and 20.) 11.4 CAPM Suppose the risk-free rate is 8 percent. The expected return on the market is 14 percent. If a particular stock has a beta of .60, what is its expected return based on the CAPM? If another stock has an expected return of 20 percent, what must its beta be? (See Problem 13.)

CAN I GET HELP as soon as possible please     Explain your answer for each of them. Show all your work.   The required return on ABC stock is 14%. The risk-free rate of return is 4% and the real rate of return is 2%. How much are investors requiring as compensation for risk?   A) 8% B) 10% C) 12% D) 14%   The efficient market hypothesis suggests thatA) investors should not try to outguess the market by constantly buying and selling securities. B) investors do better on average if they adopt a "buy and hold" strategy.C) buying into a mutual fund is a sensible strategy for a small investor.D) all of the above are sensible strategies.E) only A and B of the above are sensible strategies.

H3. Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 30% Slow Growth 0.5 6% Recession 0.3 −2%   Please show proper step by step calculation

Please complete in Excel (and show work)