For the RSI it was 73
I think I guessed 73 as well but it is just a guess. I couldn’t get the answer though. What was CAPM one?
Trotfoxtrot Wrote: ------------------------------------------------------- > @ pupdawg82 > > The one with the risk free rate, the market > premium and 2 volatilities?? FML, I forgot about this one. Struggled with it as well. I hope it was “C”.
yes I marked B = 7.79 for CAPM as it was closest to 8. option C was 8.33. Risk free rate was 3.5 and Market premium was 8.
and how do you calculate the beta??
God knows. I guessed 7.79 as answer. Hopefully missing problems like CAPM, RSI wouldn’t cost us 6 months. Looks like many of us couldn’t solve them comfortably though.
it was Vol1/Volatily2 --> that becomes your new beta --> if less than 1 its its beta is < 1 if volatility of fund > volatility of mkt --> beta > 1
What would you consider vol 1 as - Volatility of S&P 500 or volatility of some exchange?
RSI = 83 I think Average up was 2 and average down was 10 (final move) so calculation was 1-100/(1+2/10)
Don’t you divide up number with avg of 10 so 18/10 = 1.8and Down 10/10 = 1 100-100/1-1.8/10?