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- Please Calculate the Following using the Table Given. Beta Internal Rate of Return (IRR). Gamma’s Internal Rate of Return (IRR). The incremental Internal Rate of Return (ΔIRR) between the Alpha and Gamma harvesters (using Excel’s IRR function).omplete the table below using CAPM model Case Expected return RF RM Beta B 9% 8% 10% ?Example of CAPM Equation: Case Risk free Rate (Rf) Market return (Km) Beta (b) Required Return A 5% 8% 1.30 ? B 8% 13% 0.90 ? C 10% 15% -0.20% ? D ? 12% 1.0 12% E 6% ? 0.60 9% F 5% 16% ? 10% Required: Using CAPM equation, compute the missing value (?)
- What is the expected rate of return if the beta is 1.14 and the Rf is 4.2%, Rm is 12%The delta of a call optio is very much in-the-money is likely close to a. 0 delta b. 100 deltaAssume that the risk-free rate, RF, is currently 9% and that the market return, rm, is currently 16%. a. Calculate the market risk premium. b. Given the previous data, calculate the required return on asset A having a beta of 0.4 and asset B having a beta of 1.8.
- Calculate volatility and lower partial moment using the data below. ( , ) Target return is 0% Rate of return : 8,3%, 6.8%, -2.4%, 12,5%, 13.2%, -0.2%, -1.3%, 10.8%, 12.5%, 9.3%Don't use chatgpt, I will 5 upvotes The probability distribution of returns of Stutson Gheegi Manufacturing is presented below. what is the standard deviation of returns of Stutson Gheegi? (recurring content question) \table[[Probability,Return],[10%,28%find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate whether q is under priced, over priced or correctly priced Beta q= 1.25, rf= 2% rm=12% rq=13.5%
- An analyst has modeled the stock of Crisp Trucking using a two-factor APTmodel. The risk-free rate is 6%, the expected return on the first factor (r1) is12%, and the expected return on the second factor (r2) is 8%. If bi1 5= 0.7 andbi2 5= 0.9, what is Crisp’s required return?Consider a single-index model economy. The index portfolio M has E(RM ) = 6%, σM = 18%.An individual asset i has an estimate of βi = 1.1 and σ2ei = 0.0225 using the single index modelRi = αi + βiRM + ei. The forecast of asset i’s return is E(ri) = 12%. rf = 4%. a) According to asset i’s return forecast, calculate αi. (b) Calculate the optimal weight of combining asset i and the index portfolio M . (c) Calculate the Sharpe ratio of the index portfolio M and the portfolio optimally combiningasset i and the index portfolio M .APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1 = 0.7 and bi2 = 0.9, what is Crisp’s required return?