Free ICBRR Exam Braindumps (page: 42)

From a risk point of view, which of the following factors will generally lead to the fluctuation of equity values with industry P/E levels and a company's individual earnings?

I) Sales
II) Cost management
III) Commercial success of the company
IV) Market sentiment

A risk associate is trying to determine the required risk-adjusted rate of return on a stock using the Capital Asset Pricing Model.
Which of the following equations should she use to calculate the required return?

To estimate the required risk-adjusted rate of return on a highly volatile energy stock, a risk associate compiled the following statistics:

Risk-free rate = 5%
Beta = 2.5
Market Risk = 8%

Using the Capital Asset Pricing Model, she estimates the rate of return to be equal:

To estimate the responsiveness of a particular equity portfolio to the overall market, a trader should use the portfolio's