The ____ the number of stocks in a portfolio and the ____ the time period the ____ the portfolio beta.

You expect the risk-free rate (RFR) to be percent and the market return to be percent. You also have the following information about three stocks.       Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y 1.5 $27 $29 $0.25 Z $35 $38 $1.00 What is the expected (required) rate of return for the stock Z? (Keep 4 decimal places)

Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (l0) = .025 and the risk premiums for the two factors are (l1) = .12 and (l2) = .10.   Stock Factor 1 bi1 Factor 2 bi2 A -0.25 1.1 B -0.05 0.9 C   0.01 0.06 Assume that stocks A, B, and C never pay dividends and stocks A, B, and C are currently trading at $10, $20, and $30, respectively. What is the expected price next year for each stock?

You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.       Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y $ $ $ Z 0.90 $35 $38 $1.00 What is the estimate rate of return for stock Y? (Keep 4 decimal places)  

In the Black-Scholes option pricing model, an increase in the risk free rate (RFR) will cause

In your portfolio you have $1 million of 20 year, 8 5/8 percent bonds which are selling at  83 15/32 against this position. Because you feel interest rates will rise you sell 10 bond futures at 81 15/32 against this position. Two months later you decide to close your position. The bonds have fallen to 78 and the futures contracts are at 75 /32. Disregarding margin and transaction costs, what is your gain or loss?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   XYZ CORP   Exercise NYSE   Date Price Price Close Calls OCT 85 16 3/4 101 11/16   OCT 90 12 101 11/16   OCT 95 7 5/8 101 11/16 Puts OCT 85 1/8 101 11/16   OCT 90 3/8 101 11/16   OCT 95 13/16 101 11/16   If you establish a long straddle using the options with a 90 exercise price, what is your dollar gain or loss if at expiration XYZ is trading at /16? (Keep 2 decimal places)

Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline in share values using stock index futures. Currently a stock index future is priced at 1250 and has a multiplier of 250. The portfolio beta is 1.25. Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

If you were to purchase an October option with an exercise price of 50 for 8 and simultaneously sell an October option with an exercise price of 60 for 2, you would be

Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline in share values using stock index futures. Currently a stock index future is priced at 1250 and has a multiplier of 250. The portfolio beta is 1.25. Calculate the number of contract required to hedge the risk exposure and indicate whether the manager should be short or long.