A portfolio consists of two stocks, A and B. A has an expected return of 10%, and B has an expected return of 15%. What is the expected return on the portfolio? (Assume that there is an equal amount of investment in both the stocks.) Multiple choice question. 5% 1.5% 25% 12.5%
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A portfolio consists of two stocks, A and B. A has an expected return of 10%, and B has an expected return of 15%. What is the expected return on the portfolio? (Assume that there is an equal amount of investment in both the stocks.)
5%
1.5%
25%
12.5%
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- You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: 8p 1.70 1.30 0.85 1.00 Portfolio X Y Z Market Risk-free Rp 11.5% 10.5 7.2 10.9 4.6 R-squared op 38.00% 33.00 23.00 28.00 0 Assume that the correlation of returns on Portfolio Y to returns on the market is 0.76. What percentage of Portfolio Y's return is driven by the market? Note: Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.Data: So=102; X = 115; 1 + r=1.1. The two possibilities for ST are 146 and 84. Required: a. The range of S is 62 while that of P is 31 across the two states. What is the hedge ratio of the put? b. Form a portfolio of one share of stock and two puts. What is the (nonrandom) payoff to this portfolio? c. What is the present value of the portfolio? d. Given that the stock currently is selling at 102, calculate the put value. × Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the present value of the portfolio? Note: Round your answer to 2 decimal places. Present value $ 146.00 xBaghiben
