Author: Anonymous

You are analyzing Clement Industries’ returns.  They have a Beta of 1.10 and just experienced a one-year stock price return of 12%.  During the same time period, the Market Risk Premium was 7%, and the S&P 500 returned 10%.  What was the Alpha generated by Clement Industries? Report your answer in decimal form and round to at least 4 decimals.

Suppose you are considering building a portfolio from two stocks, G and H.  The returns of these two stocks are slightly positively correlated, with a correlation coefficient of 0.25.     Expected Return Standard Deviation Stock G 8.40% 12.00% Stock H 3.60% 5.00% Calculate the Standard Deviation of the Minimum Variance Portfolio.  Report your answer in decimal form and round to at least 4 decimals.

A company has a beta of 1.0, pays a constant dividend of $3.50 per year, and is expected to continue doing so indefinitely.  The current market return is 9%.  What is the intrinsic value of the company stock?  Round to the nearest cent.

In Portfolio Optimization, why is the “optimally risk” portfolio referred to as “optimally risky”?  Select all that apply.

You have a portfolio consisting of two stocks, X and Y, with expected returns of 12.4% and 6.9%, respectively.  The weight of Stock X is 0.42.  What is the expected return on the portfolio?  Report your answer in decimal form and round to at least 4 decimals.

You own a stock which is expected to return 10% in a booming economy, 7% in a normal economy, and -6% in a recessionary economy.  If the probability of a recessionary economy increases, your expected return will:

Match the environmental program with its primary regulatory focus

A SIP can be more stringent than the federal baseline CAA requirements in a given state.

OSHA regulations are always independent of environmental permit programs and do not influence environmental compliance planning.

A facility undergoing a state permitting process must ensure that its emission controls meet the more stringent requirements of the applicable [BLANK-1], even if federal standards would allow less stringent limits.