You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the portfolio? Stock Apple Amount Beta Expected Return $1,000 2.40 10.50% Microsoft $7,000 0.73 16.90% $4,000 1.95 15.75% $8,000 1.27 11.80% Ford Time Warner 11.68% O 13.87% O 13.74% 15.74% 14.31%
You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the portfolio? Stock Apple Amount Beta Expected Return $1,000 2.40 10.50% Microsoft $7,000 0.73 16.90% $4,000 1.95 15.75% $8,000 1.27 11.80% Ford Time Warner 11.68% O 13.87% O 13.74% 15.74% 14.31%
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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Transcribed Image Text:You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected
return of the portfolio?
Stock
Amount Beta
Expected Return
Apple
$1.000
2.40
10.50%
Microsoft
$7,000
0.73
16.90%
Ford
$4,000
1.95
15.75%
Time
$8,000
1.27
11.80%
Warner
11.68%
13.87%
13.74%
15.74%
14.31%
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