Hi teacher please help me this question general accounting Amount Invested:.5,000 shares of Stock A $10,000, Beta = 1.8⚫ 10,000 shares of Stock B $30,000, Beta = 1.520,000 shares of Stock C $20,000, Beta = 1.2(A) The beta for the portfolio is?a. 1.371b. 1.450c. 1.500d. 1.398e. None of the above(B) If the risk-free rate of return is 5 percent and the market risk premium is 8 percent,then the required return on the portfolio is?a. 14.60 percentb. 15.97 percentc. 17.00 percentd. 18.85 percente. None of the above

A) B) As per CAPM-Required return on portfolio = Risk-free rate + Beta*Market risk premiumRequired…

Answered: Amount Invested: . 5,000 shares of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If you hold a portfolio made up of the following stocks: Investment Value Beta Stock X $4,000 1.5 Stock Y $5,000 1.0 Stock Z $1,000 .5 What is the beta of the portfolio? A. 1.00 B. 1.24 C. 1.33 D. 1.15
Mike Flannery holds the following portfolio: What is the portfolio's beta? Do not round your intermediate calculations.Stock Investment BetaA $150,000 1.40B $20,000 0.80C $130,000 1.00D $75,000 1.20Total $375,000 Question 6Select one: a. 1.02 b. 1.05 c. 1.28 d. 1.19 e. 1.43
Donald Gilmore has $100,000 invested in a 2-stock portfolio. $77,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 1.26 b. 1.28 c. 1.30 d. 1.34 e. 1.32
b) Calculate the beta of the following portfolio. Amount invested Stock Security Beta A RM6,700 1.58 B RM4,900 1.23 C RM8,500 0.79
Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain.
5. Your stock portfolio consists of the following investments: Company A B C Investment A. 1.73 B. 1.88 C. 2.03 D. 2.17 E. 2.40 $ 400 $ 600 $1,000 Standard Deviation 1.5 2.0 3.0 Beta 1.2 1.8 2.2 Expected Return 9% 10% 12% Using the appropriate measure of portfolio risk, calculate your portfolio level of risk.
Give typing answer with explanation and conclusion
Problem 1 You are given the following information about stock X and the market portfolio, M: Riskless Asset (f) Stock X Market Portfolio (M) E(r) 0.04 (4%) ? 0.10 σ 0.00 0.30 0.20 You are not given the expected return of stock X. The correlation of the returns on the stock X and the market portfolio is equal to 0.4. a) What is the beta (6) of stock X? b) Assuming the CAPM holds, what is the expected return on stock X? c) You have $1,000 to invest in some combination of the risk-free asset, stock X, and the market portfolio. You are thinking of investing $300 in the risk free asset, $400 in stock X, and $300 in the market portfolio. What is the overall expected return, standard deviation and beta of this portfolio?
A $33,622 portfolio is invested in a risk-free security and two stocks. The beta of Stock A is 2.1 while the beta of Stock B is 0.84. One-half of the portfolio is invested in the risk-free security. How much (in $) is invested in Stock A if the beta of the portfolio is 0.56? Answer to two decimals
A4 a. Suppose we have two risky assets, Stock I and Stock J, and a risk-free asset. Stock I has an expected return of 25% and a beta of 1.5. Stock J has an expected return of 20% and a beta of 0.8. The risk-free asset’s return is 5%. a. Calculate the expected returns and betas on portfolios with x% invested in Stock I and the rest invested in the risk-free asset, where x% = 0%, 50%, 100%, and 150%.
An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.39 $1,939.00 B 1.21 $2,818.00 C 0.75 $1,378.00 The risk-free rate is currently 3.00%, while the market risk premium is 6.00%. What is the beta of this portfolio?
You have a portfolio with the following: Stock W X Y Z Number of Shares 1,050 950 700 925 Expected return Price $59 36 72 57 % Expected Return 10% 423 14 12 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 13

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