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You choose to construct a portfolio from the Stock A, Stock B, and the risk-free investment. You make the following estimates of the three: Estimates of Alpha, Beta, and Firm-Specific Risk   Alpha Beta Firm-Specific Std Dev Stock A 0.50% 1.20 30.00% Stock B 0.25% 0.60 20.00% Risk-Free Investment 0.00% 0.00 0.00% You invest 25% of your portfolio in Stock A, 40% in Stock B, and the remaining 35% in the risk-free investment. What is your portfolio’s alpha?  

A stock was bought for $40 and sold for $48 after one year. The stock paid a dividend of $2 during the holding period. What is the holding period return?

If the average firm-specific risk of a sample of stocks is 32%, what is the remaining firm-specific risk of an equal-weighted portfolio of 36 stocks?

You choose to construct a portfolio from the Stock A, Stock B, and the risk-free investment. You make the following estimates of the three: Estimates of Alpha, Beta, and Firm-Specific Risk   Alpha Beta Firm-Specific Std Dev Stock A 1.50% 2.00 80.00% Stock B 1.20% 1.10 60.00% Risk-Free Investment 0.00% 0.00 0.00% You invest 30% of your portfolio in Stock A, 40% in Stock B, and the remaining 30% in the risk-free investment. What is your portfolio’s alpha?  

Given the following factor loadings from the Fama-French three-factor model, describe the characteristics of the stock: Market beta (βMKT): 1.2 SMB loading (βSMB): -0.8 HML loading (βHML): 0.5

You choose to construct a portfolio from the Stock A, Stock B, and the risk-free investment. You make the following estimates of the three: Estimates of Alpha, Beta, and Firm-Specific Risk   Alpha Beta Firm-Specific Std Dev Stock A 1.75% 1.50 40.00% Stock B 1.25% 0.80 60.00% Risk-Free Investment 0.00% 0.00 0.00% You invest 25% of your portfolio in Stock A, 40% in Stock B, and the remaining 35% in the risk-free investment. What is your portfolio’s alpha?  

Given the following factor loadings from the Fama-French three-factor model, describe the characteristics of the stock: Market beta (βMKT): 0.8 SMB loading (βSMB): -0.8 HML loading (βHML): -0.5

If the average firm-specific risk of a sample of stocks is 32%, what is the remaining firm-specific risk of an equal-weighted portfolio of 16 stocks?

Your fund’s risky portfolio has an expected return of 11% and a standard deviation of 22%. The risk-free rate is 3%. Based on your advice, your client goes with a risky portfolio allocation of 25%. What is the expected return on their complete portfolio?

A stock was bought for $57 and sold for $58 after one year. The stock paid a dividend of $4 during the holding period. What is the holding period return?