The Expected Return on the Market Portfolio Is 20% and the Riskless

question 19

Essay

The expected return on the market portfolio is 20% and the riskless rate is 10%.XYZ gold mining has a beta of -0.2.What is the expected return on a short sale of 100 shares of XYZ,assuming you can get the proceeds of your short sale? What if you can't?

---

Definitions:

Fair Labor Standards Act

U.S. legislation that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".

Hazardous Occupation

A job or profession that poses significant risks to the safety and health of the workers.

Health-Care Coverage

A type of insurance that pays for medical and surgical expenses incurred by the insured, helping to cover health care costs.

Gross Misconduct

Deplorably unacceptable behavior or actions by an employee that can lead to immediate dismissal due to its serious nature.