these are simple mcq question ,please explain why you choose that particular option QUESTION 2Ms Obang is reviewing the performance of one of the shares in her portfolio. She bought the share a year ago for £4.00 (ex-div). Over the year it paid a dividend of 20p and the share price currently stands at £4.20 (ex-div). The shares equity beta is1.4. The yield on short-date Treasury Bills over the year has been 1.2% and the Market Return is 6%.Using the CAPM, what has been the performance of the share over the last year?O A. 2.1% under-performanceOB.4.6% under-performanceOc.2.1% over-performanceOD.4.6% over- performanceO E. 1.6% over-performance QUESTION 1Mrs Azaz is going to invest in a two-share portfolio. You are given the following details of the two shares she is considering.She wishes to invest 60% in Share A and 40% in Share B.Share AShare BReturns16.0 per cent11.0 per centStandard deviation18.1 per cent10.7 per centThe correlation coefficient between the two shares is 0.271. What is the expected risk and return of the investors portfolio?OA 14% Return12.7% Standard DeviationO B. 14% Return14.4% Standard DeviationOC. 14% Return15.1% Standard DeviationO D. 13.5% Return14.1% Standard DeviationO E. 13.5% Return12.7% Standard Deviation

Q1. Given: Share A Share B Returns 16.00% 11.00% Standard Deviation 18.10% 10.70%…

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these are simple mcq question ,please explain why you choose that particular option

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...

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