You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Stock Apple Microsoft Ford Time Warner Amount Beta Expected Return $9,370 0.69 10.50% $5,598 1.6 16.90% $4,261 1.1 15.75% $4,668 2.39 11.80%

You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Stock Apple Microsoft Ford Time Warner Amount Beta Expected Return $9,370 0.69 10.50% $5,598 1.6 16.90% $4,261 1.1 15.75% $4,668 2.39 11.80%

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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You hold the positions in the table below. Portfolio Beta Required return I Price $48.00 Amazon.com Family Dollar Stores McKesson Corporation Schering-Plough Corporation What is the beta of your portfolio? If you expect the market to earn 14.60 percent and the risk-free rate is 4.20 percent, what is the required return of the portfolio? Note: Do not round intermediate calculations and round your final answers to 2 decimal places. % Shares 175 179 155 309 29.00 76.00 33.00 Beta 4.06 2.20 0.62 1.22
You have a portfolio with the following: Stock Number of Shares W NAXM 1,075 975 Y Z 725 950 Price $ 60 6325 37 73 58 Expected Return 12% 16 14 15 What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected return
Assume that you have just received information from your investment advisor that your portfolio has reached a value of $1,250,000. Your portfolio consists of three stocks, as follows: Stock Amount Invested % of Total Beta A $250,000 20% 1.12 B $400,000 32% .85 C $600,000 48% .55 Total: $1,250,000 100% Calculate the beta of this investment portfolio. Assume that the expected market return ( r m ) is 9 percent and the expected risk- free rate ( RF ) is 2 percent. What is the expected return ( r j ) for this investment portfolio?
the following information is provided for the stock market: Expected Beta Return Alphabet 12.5% 1.5 Meta 9% 1 Yahoo ? 1.35 (a) (10 points) In the context of CAPM, calculate the expected return of Yahoo
Please send me answer of this question within 10 min i will give you like sure.send me typed answer
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta А $250,000 1.25 B 200,000 1.70 с 400,000 0.85 D 150,000 -0.25 Total investment $1,000,000 The market's required return is 10% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places. %
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.2 B 200,000 1.6 C 400,000 0.75 D 100,000 -0.35 Total investment $1,000,000 The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized below. Stock A B C Investment $196,000 294,000 490,000 Beta Expected rate of return 1.50 0.55 1.35 Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 18 percent and that the risk-free rate is 9 percent. (Round beta answer to 3 decimal places, e.g. 52.750 and expected rate of return answer to 2 decimal places, e.g. 52.75%) Beta of the portfolio %
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.20 B 200,000 1.60 C 400,000 0.80 D 150,000 -0.35 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
Vijay
1. You have $100,000 invested in this portfolio. $55,000 is invested in IBM: Probability of State of Economy 0.15 IBM 0.05 TWTR -0.17 Recession Normal 0.65 0.08 0.12 Вoom 0.20 0.13 0.29 What is the expected return and standard deviation of each stock? What is the portfolio expected return and standard deviation? You are considering adding another stock, DNKN, with a beta of 1.3 to the portfolio. The market risk premium is 8% and the risk-free rate is 2.5%. What is the expected return of this asset? You decide to open a separate account at another brokerage firm. Your goal is to have a portfolio beta of 1.12. The portfolio consists of 20% U.S. Treasury bills, 50% stock A, and 30% stock B. Stock A has a risk- level equivalent to that of the overall market. What is the beta of stock B? Please interpret what this beta measure represents relative to the beta of the market. What is the difference between systematic and unsystematic risk? Be sure to mention which is diversifiable risk and…
You have a portfolio of six stocks. The portfolio weights of each stock and each stock's beta are shown below. A B C 1 Beta Weight 2 Wingbat 1.54 22% 3 Flow Exchange 0.91 16% 4 Mega Metalurgy 0.54 14% 5 Fly by Cart 1.47 16 % 6 Zip Tripper 1.88 12 % 7 Alphabet Now 1.18 20% What is your portfolio beta?

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