Below is a return decomposition for two stocks, where the stock’s excess returns are on the y-axis and market excess returns are on the x-axis.  Answer the following questions    Which stock has the higher alpha? (2 points)   Which stock has the higher beta? (2 points)   Which stock has the higher firm-specific risk? (2 points)   Which stock is riskier to an investor currently holding her portfolio in a diversified portfolio of common stock? Give a short explanation justifying your choice. (2 points)           Which stock is riskier to an undiversified investor who puts all of his funds in only one of these stocks? Give a short explanation justifying your choice. (2 points)

 Consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 15%. What is the beta on a stock with an expected return of 19%?

Which one of the following statements about IPOs is not true? 

Extra Credit (2 points): Explain the business model of Private equity (what are they taking advantage of and what companies are they looking for in terms of type).  Why has this business model taken a hit recently?     Extra Credit (2 points): Write out the derivation of the CAPM equation.  Explain each step briefly in the derivation.  

If a portfolio had a return of 15%, the risk free asset return was 3%, and the standard deviation of the portfolio’s excess returns was 34%, the risk premium would be _____.

Suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that ______. 

During a heavy deadlift, which mechanism prevents the lifter from tearing a tendon due to excessive force?

Cats have a special need for four amino acids [1], [2], arginine, and cysteine.

In terms of nutrition, iron and zinc are considered [1], while calcium and sodium are considered [2].

____________________________ is/are a category of dietary supplements that may delay or prevent oxidative processes in the body and in food.