EVALUATING RISK AND RETURN

Stock X has a 10.5% expected return, a beta coefficient of 1.0, and a 35% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.

1. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.

   CV_x =

   CV_y =

2. Which stock is riskier for a diversified investor?

   1. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is more risky. Stock Y has the lower standard deviation so it is more risky than Stock X.
   2. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X.
   3. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X.
   4. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more risky. Stock X has the higher standard deviation so it is more risky than Stock Y.
   5. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky. Stock X has the lower beta so it is more risky than Stock Y.
   -Select-IIIIIIIVVItem 3

3. Calculate each stock's required rate of return. Round your answers to two decimal places.

   r_x =  %

   r_y =  %

4. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
   -Select-Stock XStock YItem 6

5. Calculate the required return of a portfolio that has $7,000 invested in Stock X and $6,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.

   r_p =  %
   
6. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return?

Well-diversified portfolio A has a beta of 1.0 and an expected return of 12%. Well-diversified portfolio B has a beta of 0.75 and an expected return of 9%. The risk-free rate is 4%. a. Assuming that portfolio A is correctly priced (has ?? = 0), what should the expected return on portfolio B be in equilibrium? b. Explain the arbitrage opportunity that exists and explain how an investor can take advantage of it. Give specific details about what to buy and what to sell.

Reaction: H₂O + C₃H₇Br --- >  C₃H₇OH + HBr

Table 1.0

A. What is the relationship between grams of H₂O and reaction speed?

B. What is the relationship between grams of C₃H₇Br and reaction speed?

C. What is the relationship between temperature and reaction speed?

D. Write two hypotheses based on your answers in A and C.

Table 1.1

E1. Refer to Table 1.1: If the amounts of H₂O, C₃H₇Br B remain unchanged but the temperature is decreased to 15°C, how would you expect the reactions speed to change?

E2. Based on the data in Table 1.0, explain your above answer. (Use a reasonable numerical value for the reactions speed)

Table 1.2

F1. Refer to Table 1.2:  If the amount of H₂O increases to 80 grams but the amount of C₃H₇Br remains unchanged and the temperature is kept at 30°C, how would you expect the reactions speed to change?

F2. Based on the data in Table 1.0, explain your above answer. (Use a reasonable numerical value of the reactions speed)

RUBERIC

For question A: Make sure the answer contains reactions speed not related to grams of H₂O

For question B: Make sure answer contains reaction speed increases or decreases with grams of C₃H₇Br

For C: Answer contains reaction speed increases or decreases with Temperature of °C

For D1: Make sure hypothesis includes relationship between amount and reaction speed

For D2: Make sure hypothesis includes relationship between temperature and reaction speed

For E1: Answer has to include "speed decreases" with the use to hypothesis D2 to justify answer

For E2: Numerical value has to be less than 4

For F1: Make sure the answer include "no change" and hypothesis D1 was used to justify answer.

For F2: Is the numerical value 4?

Which solution has the highest concentration of NaCl?

A. 175 g NaCl in 1.0 L

B. 58.5 g NaCl in 1.5 L

C. 29.3 g NaCl in 0.5 L

D. 2.5 mol NaCl in 2.0 L

E. 5.0 mol NaCl in 3.0 L

A. Assume that the 1.0 M (NH4)2 CO3 solution that you used was 1.00 M (NH4) 2 CO3. If Ka of H2CO3 is 5.6 x 10^-11 combine K's to obtain the equilibrium coonstant for NH4 + CO3^2 = NH3 + HCO3-

B. Show that a [Co3^2-] = 0.07 sub(9) M is consistent with the Kyou calculated in (a).

C. Now Calculate the pH of this solution.

D. Compare your calculated pH with the pH of the NH3/ NH4+ buffer( pH buffer: 11.62) . Has this bufferserved its function? Discuss.

E. Using the question above and the Ksp (=6.8x10^-6) of MgCO3 is there enough CO3^2- ion in a 1.0 M (NH4)2CO3 solution to precipitate MgCO3 from a 0.2 M Mg(H2O)6^2+ solution?

F. Is the equilibrium: Mg(H2O) 6^2+ +HCO3+ NH3= MgCO3 + NH4 + 6H2O readily attained? Y or N. State how you know.

Consider separate 1.0 L samples of the following gases at STP: Cl2, C2H6, and Xe. Which of the following statements are true regarding these gas samples?

1. The Xe gas molecules collide with the container walls most frequently.

2. The Xe gas sample has the largest average kinetic energy.

3. Each Cl2 gas particle collision with the container wall is more forceful as compared to each C2H6 and Xe collision.

4. The Cl2 gas sample has the most molecules of gas present.

5. The C2H6 gas sample has the lowest density.

6. The mass of the gas in each container is the same.

Consider the titration of 50.5 mL of 1.1 M NaOH with 1.0 M HCl. You may want to reference ( pages 682 - 686) Section 16.9 while completing this problem. Part A What is the pH at the start of the titration? Express the pH to two decimal places. Part B What is the pH at the equivalence point? Express the pH to two decimal places. Part C What is the pH after the addition of a large excess of acid (in comparison with the acid volume needed to reach the equivalence point)? Express the pH as an integer.

In the titration of a 25.00 mL of 0.245 M weak base (Kb= 1.0 *10^-4) being titrated by 0.365 M HCl determinethe initial pH, the pH after 12.3 mL of HCl has been added, the pH at equivalence point, and the pH after 22.4 mL of HCl has been reached.

Please explain! I'm having a hard time with these type of questions.