Portfolio Portfolio Expected Return Beta 4.53 % 2.20 X % 43.55 X % 65.10 X % 86.65 X % 108.20 X % 129.75 X%

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
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11.9

 

Asset W has an expected return of 13.15 percent and a beta of 1.28. If the risk-free rate is
4.53 percent, complete the following table for portfolios of Asset W and a risk-free asset.
(Leave no cells blank - be certain to enter "O" wherever required. Do not round
intermediate calculations. Enter your portfolio expected return answers as a percent
rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to
3 decimal places, e.g., 32.161.)
X Answer is not complete.
Percentage of
Portfolio in Asset W
Portfolio
Portfolio
Expected Return
Beta
%
4.53
%
25
2.20
%
50
43.55 X %
75
65.10 X %
100
86.65 X
%
125
108.20 X %
150
129.75 X
%
Transcribed Image Text:Asset W has an expected return of 13.15 percent and a beta of 1.28. If the risk-free rate is 4.53 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to 3 decimal places, e.g., 32.161.) X Answer is not complete. Percentage of Portfolio in Asset W Portfolio Portfolio Expected Return Beta % 4.53 % 25 2.20 % 50 43.55 X % 75 65.10 X % 100 86.65 X % 125 108.20 X % 150 129.75 X %
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