The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock Proportion in the portfolio Beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5 CNOOC 0.15 1.8 a) Determine the portfolio beta b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio? c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio? |
The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock Proportion in the portfolio Beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5 CNOOC 0.15 1.8 a) Determine the portfolio beta b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio? c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio? |
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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The Blackwell mutual fund has a stock portfolio that are consists of the following companies.
Answer follow image.Answer step by step. DO All calculation . answer must be correct
Transcribed Image Text:The Blackwell mutual fund has a stock portfolio that are consists of the following companies.
Stock
Proportion in the portfolio
Beta
Gazprom
0.25
1.4
Shell
0.3
1.6
Exxon Mobil
0.3
1.5
CNOOC
0.15
1.8
a) Determine the portfolio beta
b) If the risk free rate is 9% and required rate is 18%, what is the required return on the
portfolio?
c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what
will be the beta of restructured portfolio? |
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