Share
Explore BrainMass

Risk, return and holding period return

1. Risk & Return and the CAPM.

Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3%
Market Return =10.5%
Beta = 1.2

2. Holding Period Return

Based on the following information calculate the holding period return:

P0 = $10.00
P1 = $12.00
D1 = $1.22

3.Risk & Return and the CAPM.

Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3.5%
Market Return =10%
Beta = 1.08

4. Sources of Risk & Diversification - convertible bond.

Address each source of risk from the portfolio perspective and how diversification impacts them. APA FORMAT 275 WORDS

5. Portfolio Theory Risk.

What is portfolio theory and why is it important to investing behavior? APA FORMAT 275 WORDS

Solution Preview

Hello,

Please see the attachment for the solution. Thank you for asking BrainMass today.

1. Risk & Return and the CAPM.
Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3%
Market Return =10.5%
Beta = 1.2

(see the attached file a chart to go along with the question)

2. Holding Period Return
Based on the following information calculate the holding period return:
P0 = $10.00
P1 = $12.00
D1 = $1.22

(see the attached file a chart to go along with the question)

3. Risk & Return and the CAPM.
Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3.5%
Market Return =10%
Beta = 1.08

(see the attached file a chart to go along with the question)

4. Sources of Risk & Diversification - convertible bond. Address each source of risk from the portfolio perspective and how diversification ...

Solution Summary

The following posting answers questions regarding rick, return and holding period.

$2.19