13. Assume that the UK short-term government bond yield is 5.12% and the FTSE All Shares Index return is 8.95%. Stock A B C D E Actual returns (%) 9.56 7.91 7.21 9.41 6.85 CAPM beta 1.15 1.8 0.75 2.45 0.75 Which of the following choice is correct? A) Stocks A and C have actual returns that are equal to their expected returns B) Stocks C and E have actual returns below their expected returns C) Stocks B and D have actual returns below their expected returns D) All five stocks have actual returns that are equal to their expected returns E) None of the above
13. Assume that the UK short-term government bond yield is 5.12% and the FTSE All Shares Index return is 8.95%. Stock A B C D E Actual returns (%) 9.56 7.91 7.21 9.41 6.85 CAPM beta 1.15 1.8 0.75 2.45 0.75 Which of the following choice is correct? A) Stocks A and C have actual returns that are equal to their expected returns B) Stocks C and E have actual returns below their expected returns C) Stocks B and D have actual returns below their expected returns D) All five stocks have actual returns that are equal to their expected returns E) None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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![13. Assume that the UK short-term government bond yield is 5.12% and the FTSE All
Shares Index return is 8.95%.
Stock
A
B
C
D
E
Actual returns
(%)
9.56
7.91
7.21
9.41
6.85
CAPM beta
1.15
1.8
0.75
2.45
0.75
Which of the following choice is correct?
A) Stocks A and C have actual returns that are equal to their expected returns
B) Stocks C and E have actual returns below their expected returns
C) Stocks B and D have actual returns below their expected returns
D) All five stocks have actual returns that are equal to their expected returns
E) None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F302a7b45-64ef-4ee3-bbc3-6e8c6ee71f29%2F7c2bb501-bde5-4557-b31a-18678a77e055%2Fmnu0af_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13. Assume that the UK short-term government bond yield is 5.12% and the FTSE All
Shares Index return is 8.95%.
Stock
A
B
C
D
E
Actual returns
(%)
9.56
7.91
7.21
9.41
6.85
CAPM beta
1.15
1.8
0.75
2.45
0.75
Which of the following choice is correct?
A) Stocks A and C have actual returns that are equal to their expected returns
B) Stocks C and E have actual returns below their expected returns
C) Stocks B and D have actual returns below their expected returns
D) All five stocks have actual returns that are equal to their expected returns
E) None of the above
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