Port Inc. has a 2-stock portfolio with a total value of $100,000.  $40,000 is invested in Stock A with a beta of 0.85 and the remainder is invested in Stock B with a beta of 1.60.  What is his portfolio’s beta? 1.42 0.98 1.26 1.11 1.30

Q: 3. An individual has $20,000 invested in a stock with a beta of 0.9 and another $30,000 in a stock…

A: In this question we are required to calculate the Beta of the portfolio from the following given…

Q: A portfolio worth $5,500 is invested in Stocks A and B plus a risk-free asset. A total of $2,500 is…

A: Let the weight of stock B = aWeight of risk free asset = 1-0.45454545-a

Q: You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the…

A: To Find: Expected return on portfolio

Q: Consider a portfolio with 83% in shares of Firestone Corp. and 17% in shares of Andromeda Inc. Find…

A: Beta portfolio = summation of weights and portfolio

Q: You own $10,000 of City Steel stock that has a beta of 2.4. You also own $9,000 of Rent-N-Co (beta =…

A: Investment in City Steel stock (A) = $10,000 Beta of City Steel stock (BA) = 2.4 Investment in…

Q: Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 9.60…

A: Investment in Ball Hawks is = (No of shares * Price)Investment in Ball Hawks is =…

Q: You own a stock portfolio invested 24 percent in Stock Q, 21 percent in Stock R, 44 percent in Stock…

A: Stock Portfolio weight Beta Q 24% 0.86 R 21% 0.92 S 44% 1.32 T 11% 1.77

Q: Assume your portfolio consists of 50% of a stock with a beta of 0.936 and 50% of a stock with a beta…

A: 1) Beta is a measure of Systematic risk of a stock or portfolio.  Beta of a portfolio measures…

Q: You own a stock portfolio invested 35% in stock a, 20% in stock B, and 45% in stock C. The betas for…

A: Portfolio is the combination of stocks and securities held in business. Portfolio beta is a measure…

Q: A. An individual has $115,000 invested in a stock with a beta of 2.15, $30,000 invested in a stock…

A: In the given question we require to compute the beta of the portfolio. Portfolio beta is the…

Q: has a total 1₂

A: So it can be mentioned as Bp = Wa*Ba + Wb*Bb  Where Bp is the portfolio Beta, and Wa is the weight…

Q: Suppose Wesley Publishing​'s stock has a volatility of 60%​, while Addison Printing​'s stock has a…

A: Wesley Publishing stock's volatility = 60%Addison printing's stock = 20%Correlation between these…

Q: Mr. Jones has a 2-stock portfolio with a total value of $540,000. $195,000 is invested in Stock A…

A: Standard deviation of portfolio comprising of 2 stocks is computed as follows-SDp = whereSDp =…

Q: Assume your portfolio consists of 50% of a stock with a beta of 0.275 and 50% of a stock with a beta…

A: 1) Beta is a measure of Systematic risk of a stock or portfolio.  Beta of market is always one.…

Q: What is the portfolio beta?

A: To calculate the portfolio beta we will multiply weight of each stock with beta of each stock.

Q: Bill has $100,000 invested in a 2-stock portfolio. $25,000 is invested in Stock A which has a beta…

A: Investment in stock A = $25,000  Beta of stock A = 1.70  Investment in stock B = $75,000  Beta of…

Q: 9. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his clients…

A: Required return refers to the return at the minimum level required by the investor for accepting the…

Q: During the same year, the risk-free rate was 5% and the return on the m portfolio was 12%. (1) What…

A: Return on portfolio and beta of portfolio can be calculated by weighted average return and beta of…

Q: 5. Samsung has $150,000 invested in a 2-stock portfolio. $65,000 is invested in Stock X and the…

A: We are required to calculate the Beta of the portfolio from the following given details in this…

Q: Martin Ortner holds a $200,000 portfolio consisting of the following stocks: Stock Investment…

A: The portfolio's beta is c. 1.037.Explanation:Step 1:Calculate the weight of each stock: We need to…

Q: Your portfolio consists of115 shares of CSH and 75 shares of​ EJH, which you just bought at $22and…

A: A portfolio is made of different stocks. The portfolio return depends upon the individual returns…

Q: a. Puan Siti Khadijah is holding a portfolio made up of the following stocks: Investment amount (RM)…

A: i) Calculation of portfolio beta: Step 1: First we have calculate proportion or weight of each stock…

Q: What is the beta of the portfolio invested 20% in Formula and 80% in Dormula?

A: Capital asset pricing model (CAPM) is a model or method which is used by the company to define the…

Q: Mr. Jones has a 2-stock portfolio with a total value of $560,000. $225,000 is invested in Stock A…

A: Standard deviation of portfolio comprising of two stocks is computed as follows:- SDp  =  where,SDp…

Q: Alex has $1,000 invested in a three-stock portfolio. $200 are invested in Peter's Manufacturing,…

A: Total investment = $1,000Investment in Peter = $200Investment in Jane = $100Investment in Market ETF…

Q: You hold a diversified portfolio consisting of a $15,082 invested in each of 5 different common…

A: Portfolio Beta = 1.13 Total Investment = $15,082 Number of stocks = 5 Removing stock beta = 0.8…

Q: What is the beta of a 4- stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock…

A: Beta of Stock A = 0.90Beta of Stock B = 1.05Beta of Stock C = 1.73Beta of Stock D = 1Weight of Stock…

Q: You hold a diversified portfolio consisting of a $5,542 invested in each of 5 different common…

A: Beta of the new portfolio is calculated using following equationWeight of each stock is calculated…

Q: You have a portfolio worth $75,000 consisting of 15 stocks with $5,000 invested in each. The…

A: Beta is measurement of risk. It shows the systematic risk which is involved in earning a return from…

Q: Tom invests two stocks, Target Corporation and Amazon Inc. The market value of Target stock is…

A: A collection of multiple investment avenues in which an investor infuses his money is considered as…

Q: portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A…

A: Formulation for SD of a portfolio is shown:

Q: Your portfolio is comprised of 30% of stock X, 40% of stock Y, and 30% of stock Z. Stock X has a…

A: The concept of portfolio beta, a measure that expresses a portfolio's total risk relative to the…

Q: Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A and 70 percent…

A: Beta: Beta can be defined as the measure of instability of a separate stock relative to the…

Q: Your portfolio consists of 95 shares of CSH and 55 shares of EJH, which you just bought at $21.68…

A: Shares of CSH = 95Shares of EJH = 55Original price of CSH = $21.68Original price of EJH = $31.95To…

Q: Suppose you have invested $35,000 in stocks with a Beta of 0.9 and another $17,000 invested in…

A: A portfolio consists of various securities such as shares, bonds, commodities that help the…

Q: You own a portfolio consisting of 100 shares of Stock A (Beta A = 1), 150 shares of Stock B (Beta B…

A: A customized portfolio comprising of stock A, stock B and risk free assets has been created. The…

Q: You decide to form a portfolio of the following amounts invested in the following stocks. What is…

A: StockAmountWeightApple8,0008000/20,000=0.4Microsoft6,0006,000/20,000=0.3Ford4,0004,000/20,000=0.2Tim…

Q: Investor X invested in three stocks equally. Return on his portfolio is 18%. Return of Stock A is…

A: Weight of each Stock = w = 1 / 3 Portfolio Return = pr = 18%Return of Stock A = ra = 14%Return of…

Q: Mr. Jones has a 2-stock portfolio with a total value of $540,000. $195,000 is invested in Stock A…

A: Given data: Total value of portfolio = $ 540,000 Total value invested in stock A = $ 195,000 Total…

Q: Mr. Jones has a 2-stock portfolio with a total value of $550,000.  $185,000 is invested in Stock A…

A: The formula to calculate the expected risk on the portfolio (standard deviation of the portfolio…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.