Finance

FI:  201 - Risk and Return Problems
Assignment 1


For each of the investments shown in the following table, calculate the rate of return earned over the specified time period.
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Investment Cash Flow during the Period Beginning Value Ending Value
     A $15,000 $120,000 $118,000
     B $80 $600 $500
     C $7,000 $45,000 $48,000



 Assume that the risk-free rate is currently 9% and the market return is currently 13%.

Calculate the required return for an asset with the following beta:

Investment Beta Required Return
Asset A .8
Asset B 1.0
Asset C 1.5
Asset D 2.0
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