QUESTION 5You have invested 20% of your money in Microsoft, 45% in GM, and the rest in Walmart. Walmart has expected return of 14%, andthe expected returns of Microsoft and GM are 12.65% and 3.12%, respectively. What is the expected return of your portfolio?7.58%8.83%9.56%10.00%12.34%Click Save and Submit to save and submit. Click Save All Answers to save all answers.#34%5MacBook ProA6&7*89Save All0

Expected return The return an investor expects to receive from an investment is called the expected…

Answered: QUESTION 5 You have invested 20% of…

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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Q1 Suppose that each of two investments has a 2% chance of a loss of $4 million and a 98% chance of a loss of $2 million. They are independent of each other. What is the expected shortfall for a portfolio consisting of the two investments when the confidence level is 95%? Round your answer to two decimal places. Answer/
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INV 1 4a You have invested in a portfolio of 60% in risky assets (Portfolio R) and 40% in T-bills. The risky portfolio is described below: E(rR)=12% σR =15% If the T-bill rate is 3%, what is the expected return on your overall portfolio, including both portfolio R and the T-bills?
QUESTION 9 Two investment advisers are comparing performance. Adviser A averaged a 20% retum with a portfolio beta of 1.5, and adviser B averaged a 15% return with a portfolio beta of 1.2. If the T-bill rate was 5% and the market retum during the period was 13%, which adviser was the better stock picker? OA Advisor B was better because he generated a larger alpha. OB Advisor A was better because he generated a higher return. OC Advisor A was better because he generated a larger alpha. OD. Advisor 8 was better because he achieved a good return with a lower beta
Energy%20 = Google Translate DETECT LANGUAGE ENGLISH ARABIC SPANISH Dhofar Energy Services has a Beta = 2.08 The risk-free %3D rate on a treasury bill is currently 4.4% and the cost of equity has 20.70%. What is the market return? Select one: a. 0.1421 b. All the given choices are not correct c. 0.1224 d. 0.2545 e. 1.0784 tam alma alma P Type here to search Esc F1 SIO F2 F3 F4 F5 F6 F7 F8
Question 9 Aluminum maker Alcoa has a beta of about 1.73, whereas Hormel Foods has a beta of 1.68. If the expected excess return of the marker portfolio is 3%, which of these firms has a higher equity cost of capital, and how much higher is it? Show your workings and round your final answers to two decimal places.
8. Problem 8.16 (CAPM and Portfolio Return) eBook Problem Walk-Through You have been managing a $5 million portfolio that has beta of 1.15 and a required rate of return of 8.175%. The current risk-free rate is 3%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %
23. What return should be expected from investing in the market portfolio that is expected to yield 18% if the investment includes all of the investor's funds plus 30% additional funds borrowed at the risk-free rate of 6%? A. 18.6% B. 19.6% C. 21.6% D. 24.0%
INV2 P1 3 You are considering an investment in a portfolio P with the following expected returns in three different states of nature: Recession Steady Expansion Probability 0.10 0.55 0.35 Return on P -15% 20% 40% The risk-free rate is currently 4%, and the market portfolio M has an expected return of 16% and standard deviation of 20%, and its correlation with P is .7. Does portfolio P have a positive or negative alpha relative to its required return given its level of risk?
Question Al Suppose you have a portion that moves twice as much as the market but has averaged only 75% of the market’s return on average over the past 15 years. The market return has averaged 13% over those years, while the risk-free rate has averaged 2%. Given this, what is the Treynor Ratio of the portfolio? 5.00 4.88 3.48 3.88 Full explain this question very fast solution sent me step by step Don't ignore any part all part work u Text typing work only not allow paper work

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QUESTION 5 You have invested 20% of your money in Microsoft, 45% in GM, and the rest in Walmart. Walmart has expected return of 14%, and the expected returns of Microsoft and GM are 12.65% and 3.12%, respectively. What is the expected return of your portfolio? 7.58% 8.83% 9.56% 10.00% 12.34%