A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 1). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? ..... О А. 1.33 О В. 1.16 С. 1.51 O D. 1.39 O 0 o o

A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 1). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio? ..... О А. 1.33 О В. 1.16 С. 1.51 O D. 1.39 O 0 o o

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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D4) Finance Consider a portfolio composed of shares AAA and BBB as shown in the following table. At 95% confidence level, select the correct statement AAA BBB Value 2,470,000 785,750 % investment 76% 24% Volatilities 2.32 % 2.69 % Correlation for both assets 0.65 Portfolio Value for both assets 3,255,750 a) The Component VaR of the Asset AAA is 92,223 and the component VaR of the Asset BBB is 27955.69 b) The contribution to the VaR of the Asset AAA is 77% and the one of the Asset 2 is 23% c) Both answers are correct
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INV 1 4a You have invested in a portfolio of 60% in risky assets (Portfolio R) and 40% in T-bills. The risky portfolio is described below: E(rR)=12% σR =15% If the T-bill rate is 3%, what is the expected return on your overall portfolio, including both portfolio R and the T-bills?
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1. The expected returns for the two assets are given below: Year Asset F Asset G 2013 16% 17% 2014 17 16 2015 18 15 2016 19 14 A. Calculate the expected return for Asset F along with the standard deviation. B. If 50% of money is invested in Asset F and 50% in Asset G calculate the portfolio return and standard deviation
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