Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3) You own the portfolio of five stocks shown below: A B C 1 Value Beta 2 3 Human Genome Frozen Food Express $ 10,600 0.92 $ 12,100 1.34 4 Molecular Device $ 7,800 1.24 5 Pandemic Busters $ 10,200 1.27 6 Zoom Technologies $ 15,100 0.59 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places.
Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3) You own the portfolio of five stocks shown below: A B C 1 Value Beta 2 3 Human Genome Frozen Food Express $ 10,600 0.92 $ 12,100 1.34 4 Molecular Device $ 7,800 1.24 5 Pandemic Busters $ 10,200 1.27 6 Zoom Technologies $ 15,100 0.59 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places.
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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Transcribed Image Text:Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3)
You own the portfolio of five stocks shown below:
A
Human Genome
B
C
Value
Beta
2
$ 10,600
0.92
Frozen Food Express
Molecular Device
$ 12,100
1.34
$ 7,800
1.24
$ 10,200
1.27
6
Zoom Technologies
$ 15,100
0.59
123456
Pandemic Busters
Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected
to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio?
Note: Do not round intermediate calculations and round your answers to 2 decimal places.
Portfolio Beta
Required Return
%
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