You have a portfolio that is invested 19 percent in Stock A, 32 percent in Stock B, and 49 percent in Stock C. The betas of the stocks are .74, 1.29, and 1.48, respectively. What is the beta of the portfolio? 0.98 1.28 O 1.22 1.33 O 1.10
Q: You own a portfolio that has $ 1,750 invested in Stock A and $ 3,900 invested in Stock B. If…
A: The return on the portfolio refers to the weighted average of the return of the constituent stocks.…
Q: You have a portfolio that is invested 17 percent in Stock A, 38 percent in Stock B, and 45 percent…
A: Information for portfolio beta calculation Stock Weight Beta A 17% 0.62 B 38% 1.17 C 45%…
Q: Assume you have invested in two other stocks: Stock A has a beta of 1.20 and Stock B has a beta of…
A: Given data for stock A: risk free rate (Rf) = 2 % market return ( Rm) = 12% Beta = 1.20 Using CAPM…
Q: A portfolio has three stocks. Their portfolio weights and expected returns are as follows.…
A: The expected return on a portfolio indicates the overall expected return from the portfolio. The…
Q: You own a portfolio that has $3,000 invested in Stock A and $4,100 invested in Stock B. Assume the…
A: The expected return on portfolio is calculated as weighted proportion of stock multiplied by the…
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: You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return…
A: Portfolio is the combination of stocks and securities being held in business. Portfolio return means…
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 have a portfolio that is equally invested in Stock F with a beta of .95, Stock G with a beta of…
A: Calculation of beta of the portfolio:- The market beta is always equal to one. Portfolio beta = Beta…
Q: you hold a portfolio made up of the following stocks: Investment Value Beta Stock X $4,000…
A: To determine the beta of the portfolio, we first need to determine the weights of each stock of the…
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: A portfolio invests in 35% in a stock S1 and the rest in another stock S2. The expected return and…
A: Portfolio refers to a combination or collection of financial instruments or securities stocks,…
Q: You own a portfolio that is 26 percent invested in Stock X, 41 percent in Stock Y, and 33 percent in…
A: Formula: Expected return of portfolio=∑i=1nWi×ri
Q: Assume you have invested in two other stocks: Stock A has a beta of 1.20 and Stock B has a beta of…
A: Required return calculation is wrong. Correct solution is provided below.…
Q: You own a portfolio that is 17 percent invested in Stock X, 32 percent in Stock Y, and 51 percent in…
A: The expected return of the portfolio can be calculated as the sum of individual weight of stock…
Q: You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A,…
A: Total portfolio value is calculated belowWeight of each stock is calculated below
Q: A $33,622 portfolio is invested in a risk-free security and two stocks. The beta of Stock A is 2.1…
A: Beta measures a stock's volatility relative to the market; a value of 1 indicates alignment with…
Q: A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta…
A: Portfolio Beta is the weighted average beta of individual stock's beta
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 own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the…
A: Given, Investment in A is $5607 Investment in B is $2853
Q: Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. What is the beta…
A: CAPM stands for the Capital Asset Pricing Model. It defines the relationship of the systematic risk…
Q: What would be the beta of this portfolio?
A: Beta shows the relation between systematic risk of the investment and the expected return of the…
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: 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 decide to form a portfolio of the following amounts invested in the following stocks. What is…
A: Portfolio beta can be calculated as the weighted average of beta of all the stocks in the portfolio.…
Q: You own a portfolio that has $2,600 invested in Stock A and $3,700 invested in Stock B. Assume the…
A: The expected return is the return of the portfolio which is the sum of each potential return that is…
Q: You have a portfolio that is invested 22 percent in Stock A, 32 percent in Stock B, and 46 percent…
A: Beta of portfolio is weighted average beta of individual stock's beta
Q: 2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5. The…
A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…
Q: Your portfolio is comprised of 30% of stock X, 40% of stock Y, and 30% of stock Z. Stock X has a…
A: The concept of portfolio beta, a measure that expresses a portfolio's total risk relative to the…
Q: You are putting together a portfolio made up of four different stocks. However, you are considering…
A:
Q: Consider an investment portfolio that consists of three different stocks, with the amount invested…
A: Given The risk free rate is 2.5% The market risk premium is 6%
Q: If you hold a portfolio made up of the following stocks:…
A: Investors take the help of beta to select stocks. Optimistic investors tend to select securities…
Q: You own a portfolio that has $1,331 invested in Stock A and $2,857 invested in Stock B. If the…
A: To calculate the expected return on the portfolio we will use the below formula Expected return on…
Q: A portfolio has 30% invested in stock A and the rest invested in stock B. If stock A has a beta of…
A: In this question, we are required to determine the portfolio beta.
Q: You own a portfolio that has $5,758 invested in Stock A and $1,616 invested in Stock B. If the…
A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated…
Q: You have a portfolio that is invested 24 percent in Stock A, 38 percent in Stock B, and 38 percent…
A: Information Stock Weight Beta A 24% 0.69 B 38% 1.24 C 38% 1.53
Q: Calculate the portfolio beta for the following portfolio: Stock A: $638 invested with a Beta of 1.3…
A: Portfolio refers to basket of different financial assets in which investment is made by single…
Q: A portfolio is invested 24 percent in Stock G, 39 percent in Stock J, and 37 percent in Stock K. The…
A: Stock Weight Return G 24.00% 10.50% J 39.00% 13.00% K 37.00% 18.00%
Q: An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.39…
A: Beta of an asset measures the sensitivity of the asset in relation to the change in the market…
Q: You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and…
A: Beta of stock A (B1) = 1.42 Beta of stock B = B2 Beta of U.S. T-Bill (B3) = 0 Weight of stock A…
Q: Suppose you invest $100, $410, and $640 of your wealth into a stock, the market, and a risk - free…
A: Investment in stock = $100Investment in market = $410Investment in risk-free asset = $640Beta of…
Q: A portfolio contains equal investments in 10 stocks. Two have a beta of 1.5; the remainder have a…
A: Given: Two stock beta = 1.5 Remaining stocks beta = 1.2
Q: You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the…
A: Portfolio return is the gain or loss realized investment portfolio with different stock. formula:…
Q: You have a portfolio that is invested 23 percent in Stock A, 36 percent in Stock B, 41 percent in…
A: Beta of the portfolio is the sum of the product of the weight of the stocks and beta of the stocks.
Q: You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If the…
A: Formula:
Q: You own a portfolio that is 21 percent invested in Stock X, 36 percent in Stock Y, and 43 percent in…
A: The expected return is the estimation of profit or loss that an investor determines from his…
Q: You own a portfolio that is 22 percent invested in Stock X, 37 percent in Stock Y, and 41 percent in…
A: A combination of the different types of funds and securities for the investment is term as the…
![You have a portfolio that is invested 19 percent in Stock A, 32 percent in Stock B, and 49 percent in Stock C.
The betas of the stocks are .74, 1.29, and 1.48, respectively. What is the beta of the portfolio?
4
O.98
1.28
1.22
1.33
1.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac3604d4-31dc-435a-9d3d-76cc1122014c%2F44110015-7e89-4401-bf9e-55b96ba41520%2F8xrwmoq_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- You have a portfolio that is invested 23 percent in Stock A, 36 percent in Stock B, 41 percent in Stock C, and the remainder in a risk free asset. The betas of the stocks are.68, 1.23.and 1.52, respectively. What is the beta of the portfolio? O1.10 1.14 O1.22 O118 O1.38You have a portfolio that is invested 22 percent in Stock A, 32 percent in Stock B, and 46 percent in Stock C. The betas of the stocks are .67, 1.22, and 1.51, respectively. What is the beta of the portfolio? Multiple Choice 1.18 1.23 1.39 1.13 1.01Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain.
- Assume that you formed a portfolio of three stocks, X, Y, and Z. The stock X's beta is 1.5, stock Y's beta is 2, and stock Z's beta is 0.5. If the weight of your wealth invested in stock X is 0.4, the weight invested in stock Y is 0.2, find the portfolio's beta.2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5. The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is A. 1.55 B. 1.65 C. 1.75 D. 1.70You have a portfolio that is equally invested in Stock F with a beta of 1.09, Stock G with a beta of 1.46, and the market. What is the beta of your portfolio?
- You are a long-term investor, having a portfolio of stocks X, Y and Z. Stocks betas are 1.01, 0.93 and 1.33. Percentage amount invested in each is 30%, 20%, 50%. Calculate the portfolio beta. O 1.15 O 1.23 O 1.10 O 1.93You are given the following information concerning three portfolios, the market portfolio, and the risk- free asset: Portfolio X Y Z Market Risk-free Rp 14.5% R-squared 13.5 9.1 10.7 5.4 op 36% 31 21 26 0 6p 1.60 1.30 .80 1.00 0 Assume that the correlation of returns on Portfolio Y to returns on the market is 72. What percentage of Portfolio Y's return is driven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)Consider a portfolio consisting of the following three stocks: E The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. a. Compute the beta and expected return of each stock. b. Using your answer from part (a), calculate the expected return of the portfolio. c. What is the beta of the portfolio? d. Using your answer from part (c), calculate the expected return of the portfolio and verify that it matches your answer to part (b). a. Compute the beta and expected return of each stock. (Round to two decimal places.) TITLT Data table Portfolio Weight (A) Volatility (B) Correlation (C) Expected Return (E) % Beta (D) НЕС Согр 0.28 13% 0.33 Green Widget (Click on the following icon a in order to copy its contents into a spreadsheet.) 0.39 27% 0.61 % Portfolio Weight Alive And Well 0.33 14% 0.43 Volatility 13% Correlation with the Market Portfolio НЕС Согр Green Widget 0.28 0.33 b. Using your answer from part (a), calculate the expected…
- Consider a portfolio with stocks A, B, and C. The total value of the portfolio is $245,000 and it is fully invested in these 3 stocks. $85,653 is invested in A and $69,552 is invested in B. The Betas of stocks A, B, and C are 1.2, .8, and 1.62, respectively. What is the Beta of the portfolio overall?Question 1: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .8, -1.3, .95, 1.2 and 1.4. The risk-free return is 3% and the market return is 7%. Compute the beta of the portfolio. Compute the required return of the portfolio.A portfolio has three stocks. Their portfolio weights and expected returns are as follows. Weight E(r) Stock A 0.4 22% Stock B 0.4 4% Stock C 0.2 -18% What is the expected return on the portfolio?
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)