You have a $1,000 portfolio which is invested in stocks A, B, and a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.33 and stock B has a beta of 0.66. How much needs to be invested in stock B if you want a portfolio beta of 0.94?

Q: Required: a) Calculate the expected return on this portfolio. b) What is the Beta of this portfolio?…

A: In finance a portfolio is a collection of different financial assets and securities like stocks,…

Q: what must the beta be for the other stock in your portfolio?

A: The beta of a portfolio helps measure the portfolio's systematic risk. The portfolio beta is…

Q: fill in the rest of the following table:

A: As the portfolio is to be as risky as the market, the beta of portfolio will be 1. As the risk free…

Q: You have just invested in a portfolio of three stocks. The amount of money that you invested in each…

A: As per Capital Assets Pricing Model the expected return is calculated with the help of following…

Q: 1.25

A: Please note that as per Bartleby answering guidelines, we are allowed to answer only first 3…

Q: You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and…

A: Proportion invested in Stock A, Stock B and Treasury Bills are equal that is 1/3 Beta of Stock A is…

Q: investments is given below: Asset Stock A Stock B Stock C Risk-free asset Investment $ 146,000 $…

A: Beta shows risk related to the overall risk of the market and beta of portfolio depends on the…

Q: You are a long-term investor, having a portfolio of stocks X, Y and Z. Stocks betas are 1.01, 0.93…

A: The question is related to Portfolio Management. The Portfolio beta is calculated with the help of…

Q: You decide to form a portfolio of the following amounts invested in the following stocks. What is…

A: A portfolio speaks to a collection of monetary resources, such as stocks, bonds, and cash…

Q: You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest.…

A: Beta of portfolio is computed as follows:-Bp= whereBp= beta of portfolioBi = beta of each assetWi=…

Q: (Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks.…

A: A portfolio is an assortment of securities—cash, stocks, bonds, and other investments—that an…

Q: Suppose you have a portfolio that has $290 in stock A with a beta of 1.04, $1, 160 in stock B with a…

A: Beta of portfolio is computed as follows:-Bp = (Ba*Wa)+(Bb*Wb)+(Br*Wr)+(Bs*Ws)whereBp =beta of…

Q: Suppose that a portfolio consist of three securities: A, B and C with expected rates of return of…

A: Portfolio refers to basket of different financial assets in which investment is made by single…

Q: How do I calculate the Portfolio Expected Return: You own a portfolio that has $4,600 invested in…

A: In this question we are required to calculate expected return of our portfolio having two stocks…

Q: You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.…

A: Beta of portfolio is computed as follows:-Bp = (Ba*Wa) + (Bb*Wb)+(Bc*Wc)+(Br*Wr)whereBp =beta of…

Q: Your client decides to invest $60 million in Flama and $40 million in Blanca stocks. The risk-free…

A: The objective of the question is to calculate the weights of the stocks in the portfolio, the…

Q: answer must be correct or i will give down vote

A: In finance, Beta is a measure of the risk arising from exposure to general market movements as…

Q: $50,000 in stock A that has a beta of 1.50, and $25,000 in stock B

A: Portfolio investment:Portfolio investment refers to the process of investing in financial assets,…

Q: You have invested 0.21 percent of your overall money in risk free treasury bills, and the rest of…

A: The beta of the portfolio refers to the weights of the sum of the individual asset betas. It is…

Q: You are considering adding Gamma stock to your portfolio. What is the required return on the stock…

A: Required return: It is the return that is accepted by an investor for holding a stock of a…

Q: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a…

A: The beta for the other stock is 1.59. Solution is provided in the explanation section. Hope this…

Q: You've assembled the following portfolio: Stock Expected return Beta Portfolio weight 1 0.128 1.8…

A: Beta is primarily used to calculate the systematic risk in the capital asset pricing model. The beta…

Q: Stock A has an expected return of 5% and a beta of .7. Stock B has an expected return of 9% and a…

A: Portfolio beta = (Weight of A * Beta of A) + ( Weight of B * Beta of B) Let's assume Weight of B = Y…

Q: You have $15,000 invested in one stock (Stock A). The risk-free rate is 0.05. Stock A has an…

A: Step 1: Gather the InformationWe start with the details provided in the problem:You have $15,000…

Q: Problem 1: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of…

A: According to bartleby guidelines , if multiple questons are asked , then st question needs to be…

Q: You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.…

A: weight of A= 144000/500000= 0.288weight of B= 136000/500000 = 0.272

Q: Stock A has a beta of 1.5, stock B has a beta of 0.75, you invest 30% in A and 70% in B. What is the…

A: Beta of Portfolio = [(Stock A beta)*(weight of stock A)] + [(stock B beta)*(weight of stock B)]

Q: You have $122,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a…

A: In the given case, we have provided the total investment amount of the portfolio . Since , the…

Q: Suppose you have four stocks in your portfolio and the beta of your portfolio is 1.06. You have…

A: Beta of Portfolio = Beta of A * Weight of A +Beta of B * Weight of B+Beta of C * Weight of C+Beta of…

Q: You are examining three different shares. Share A has expected return 5.20 %, beta 0.47, and…

A: Capital Asset pricing Model helps in determining the fair return of the investment. It determines…

Q: An equally-weighted portfolio that consists of 13 stocks has a beta of 1.5. If you replace one of…

A: As per the given information: Number of Stocks =13 Beta of 13 stocks = 1.5 Replacing Stock with a…

Q: You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a…

A: Information Provided: Beta of one stock = 0.91 Beta of risk-free asset = 0 Beta of total portfolio…

Q: You want to create a portfolio equally as risky as the market, and you have $5M to invest. Given the…

A: Calculate the weight of the risk-free asset:We know the weights of stock A and B since their…

Q: A stock has a beta of 1.24 and an expected return of 12.2 percent. A risk-free asset currently earns…

A:

Q: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a…

A: Beta of portfolio comprising of risk free asset and two stocks is computed as follows:-Bp = (wr*Br)…

Q: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a…

A: Since equally invested in risk free asset and 2 stocks Weight of each stock=(1/3)

Q: After learning the course, you divide your portfolio into three equal parts (i.e., equal market…

A: Here, Beta of Market Index is always 1 Beta of Treasury Bills is always 0 Beta of Mutual Fund is 0.8…

Q: You have been looking for stocks that are "good values" and have calculated expected returns for…

A: The minimum return that the investor expects to receive from the investment is referred to as the…

Q: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5…

A: This consists of two parts: In the first part we need to calculate the beta of the portfolio. In the…