Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) Answer is complete but not entirely correct. Portfolio Expected Return 4.0000 % 6.0750 % 8.1500 X % 10.2250 % 12.3000 % 14.3750 % 16.4500 X % Percentage of Portfolio in Asset W % 0 25 50 75 100 125 150 Portfolio Beta 0 0.300 0.600 0.900 1.200 1.500 1.800
Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) Answer is complete but not entirely correct. Portfolio Expected Return 4.0000 % 6.0750 % 8.1500 X % 10.2250 % 12.3000 % 14.3750 % 16.4500 X % Percentage of Portfolio in Asset W % 0 25 50 75 100 125 150 Portfolio Beta 0 0.300 0.600 0.900 1.200 1.500 1.800
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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Transcribed Image Text:Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4
percent, complete the following table for portfolios of Asset W and a risk-free asset.
(Leave no cells blank - be certain to enter "0" wherever required. Do not round
intermediate calculations. Enter your expected return answers as a percent rounded
to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.)
> Answer is complete but not entirely correct.
Percentage of
Portfolio in Asset W
%
0
25
50
75
100
125
150
Portfolio
Expected Return
4.0000 %
6.0750X %
8.1500 X %
10.2250 %
12.3000 x
%
14.3750 %
16.4500 X %
Portfolio
Beta
0
0.300
0.600
0.900
1.200
1.500
1.800
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