If the simple CAPM is valid, is the situation detailed below possible?  Explain in a few short sentences.  (4 points)   Portfolio                                              Expected Return                                             Beta Risk-free                                             10                                                                    0 Market                                                18%                                                                 1 A                                                         24%                                                                 1.25 B                                                         26%                                                                 2 ______________________________________________________________________       

Mark the FALSE statement about the podcast with Woo: 

What best describes the pathologic changes of red blood cells in a patient with sickle cell anemia?

Consider the following two investment alternatives. First, a risky portfolio that pays 15% rate of return with a probability of 40% or 5% with a probability of 60%. Second, a treasury bill that pays 6%. The risk premium on the investment is _________. 

  Extra Credit (3 points): If you wanted to make a bet that the TSLA will go do poorly over the next year, but will do well over the long run (ie. will outperform over the next 5 years) what trade will you put on? Describe the trade (what options are you using) and what is the name of the trade you have formed.

The value of a listed call option on a stock is higher when: The exercise price is higher. The contract has a longer time til expiration. The stock increases in value. A cash dividend is paid.

In which of the following ways was Emperor GoDaigo different than his predecessors?

EXTRA CREDIT: Your portfolio manager tells you that they delivered 15% last year. You follow up with the portfolio manager and ask them for two years of performance data which they give you. You take the data from year t-2 to year t-1 and run the following regression: Ri = Rf  + βmRm + βsmbRsmb + βhmlRhml   And you find that:           βm = 1.10      βsmb = 1.2      βhml = 0.80 Using the following returns from year t-1 to year 0: Rf =  0         Rm = .12      Rsmb =  .01      Rhml =   .02      Did the portfolio manager actually do well over yr t-1 to 0-  what were their FF adjusted returns? According to the Beta coefficients, what types of risk is the manager primarily taking?  (3 points)  

Mark the False statement below about a possible capital war in the tariff battle   

Which period saw the greatest spread of urbanization in Japanese history?