You observe that the inflation rate in the United States is 2.8 percent per year and that T-bills currently yield 3.3 percent annually. Use the approximate international Fisher effect to answer the following questions. Required:a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 6 percent per year?b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 9 percent per year?c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 11 percent per year?

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Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.

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