Problem 13-11 Calculating Portfolio Betas [LO4] You own a stock portfolio Invested 25 percent In Stock Q, 30 percent In Stock R, 30 percent in Stock S, and 15 percent In Stock T. The betas for these four stocks are .75, 1.13, 1.14, and 1.31, respectively. What is the portfolio beta? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta
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Raghubhai
![Problem 13-11 Calculating Portfolio Betas [LO4]
You own a stock portfolio Invested 25 percent In Stock Q, 30 percent In Stock R, 30
percent in Stock S, and 15 percent In Stock T. The betas for these four stocks are .75, 1.13,
1.14, and 1.31, respectively. What is the portfolio beta? (Do not round Intermedlate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
Portfolio beta](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1774fd5-ccd9-46a6-9c5f-f481ab319ac2%2F0650e5f6-def4-4f7d-b531-3810f6a744da%2Fl1x6e1vi_processed.jpeg&w=3840&q=75)
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- RaghubhaiQuestion 29 Assume the following data for a stock: risk-free rate 5 percent: beta (market) = 1.4; beta (size) - 0.4; beta (book-to- market)-1.1; market risk premium - 13 percent; size risk premium 9.7 percent; and book-to-market risk premium = 11.2 percent. Calculate the expected return on the stock using the Fama-French three-factor model. O 26.5 percent 14.8 percent O 25.1 percent 12.0 percentProblem 11-2 Portfolio Expected Return [LO 1] You own a portfolio that has $2,600 invested in Stock A and $3,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
- N38. Problem 8.02 (Portfolio Beta) A-2 J Ofice eBook An individual has $45,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 1.9. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.Problem 11-3 Portfolio Expected Return [LO 1] You own a portfolio that is 28 percent invested in Stock X, 43 percent in Stock Y, and 29 percent in Stock Z. The expected returns on these three stocks are 9 percent, 12 percent, and 14 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
- Problem 11-12 Calculating Portfolio Betas [LO 3] You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.22 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta16 [Question text] What is the beta of the following portfolio? Stock Amount invested (RM) Security beta A 14,200 1.39 B 23,900 0.98 C 8,400 1.52 Select one: A. 1.01 B. 1.05 C. 1.20 D. 1.122. Problem 8.02 (Portfolio Beta) еВook An individual has $45,000 invested in a stock with a beta of 0.5 and another $30,000 invested in a stock with a beta of 2.2. If these are the only investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
- Problem 11 Intro Assume that the CAPM holds. One stock has an expected return of 9% and a beta of 0.5. Another stock has an expected return of 13% and a beta of 1.5. Part 1 What is the expected return on the market? 3+ decimals SubmitProblem 11-23 Calculating Portfolio Weights [LO 1] Stock J has a beta of 1.28 and an expected return of 13.56 percent, while Stock K has a beta of .83 and an expected return of 10.5 percent. You want a portfolio with the same risk as the market. a. What is the portfolio weight of each stock? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) b. 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.) а. Stock J Stock K b. Expected return %stions Problem 8.13 (CAPM, Portfolio Risk, and Return) eBook Problem Walk-Through Question 11 of 15▸ Check My Work Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 8.50% 16% 0.8 C 9.25 10.75 16 16 1.1 1.7 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 6.5%, and the market is in equilibrium. (That is, required returns equal expected returns.) a. What is the market risk premium (rM - TRF)? Round your answer to one decimal place. % b. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places. c. What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places. % d. What would you expect the standard deviation of Fund P…