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Suppose you invest in 220 shares of Johnson and Johnson (JNJ) at $70 per share and 240 shares of Yahoo (YHOO) at $20 per If the price of Johnson and Johnson increases to $80 and the price of Yahoo decreases to $18 per share, what is the return on your portfolio?

You have $100 and you can invest in a risky asset with an expected one-year rate of return of 11% and a standard deviation of 21% and a T-bill with a one-year rate of return of 4.5%. If these are the only two assets in which you can invest, how can you form a portfolio that has an expected value of $114 one year from today?

Your personal opinion is that a security has an expected one-year rate of return of 11%. The security has a beta of 1.5. If the one-year risk-free rate is 5% and the expected market risk premium is 4%, according to the Capital Asset Pricing Model this security is                              .

Which of the portfolios listed below had the largest average annual arithmetic return over the period from 1926 through 2019?

Burton Malkiel makes all of the following points in A Random Walk Down Wall Street (chapter 7) EXCEPT:

The realized nominal rate of interest is almost always greater than the real rate of interest.

Over the past year, you earned a nominal rate of interest of 8% on your The inflation rate was 3.5% over the same period. The exact actual growth rate of your purchasing power was ___________.

If you believe markets are __________ efficient, then you believe that stock prices reflect all relevant information, including historical stock prices and current public information about the firm, but not information that is only available to insiders.

Kenneth French provides the historical monthly returns for portfolios of stocks in 48   industries. The 48 industries are listed in the table below: Agriculture Pharmaceuticals Defense Shipping Containers Food Products Chemicals Mining Transportation Candy & Soda Rubber & Plastics Coal Wholesale Beer & Liquor Textiles Oil & Gas Retail Tobacco Products Construction Utilities Restaurants/Hotels Recreation Steel Works Communication Banking Entertainment Fabricated Products Personal Services Insurance Printing & Publ. Machinery Business Services Real Estate Consumer Goods Electrical Equip. Computers Trading Apparel Autos & Trucks Electrical Equip. Other Healthcare Aircraft Measuring Equip. Precious Metals Medical Equipment Ships & Railroads Business Supplies Const. Materials Which of the following portfolios would you expect the ratio of firm specific risk to total risk to be the smallest?

The expected impact of unanticipated macroeconomic events on a security’s return during the period is _________.