You hold the positions in the table below. Price Shares Beta Amazon.com $49.00 101 3.97 Family Dollar Stores McKesson Corp. 37.00 182 2.40 71.00 161 0.58 Schering-Plough Corp. 22.00 471 1.22 What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Portfolio beta % If you expect the market to earn 16.30 percent and the risk-free rate is 6.00 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Required return %

You hold the positions in the table below. Price Shares Beta Amazon.com $49.00 101 3.97 Family Dollar Stores McKesson Corp. 37.00 182 2.40 71.00 161 0.58 Schering-Plough Corp. 22.00 471 1.22 What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Portfolio beta % If you expect the market to earn 16.30 percent and the risk-free rate is 6.00 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Required return %

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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Question content area top Part 1 (Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7 percent, and the expected return for the market is 12.5 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.71 T 1.62 P 0.89 W 1.37 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. The expected rate of return for security H, which has a beta of 0.71, is enter your response here%. (Round to two decimal places.) Part 2 b. The expected rate of return for security T, which has a beta of 1.62, is enter your response here%. (Round to two decimal places.) Part 3 c. The expected rate of return for security P, which has a beta of 0.89, is enter your response here%. (Round to two decimal places.) Part 4 d. The expected rate of return for…
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
Want the Correct answer of what is correct option
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock A B C D Dollar investment % $200,000 200,000 300,000 300,000 Beta 1.25 1.50 0.80 -0.25 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 5.5 percent, and the expected return on the market is 10 percent. What is JaiLai's cost of equity? (Round your answer to 2 decimal places.) Cost of equity % ces MacBook Air
Intro Amazon has a beta of 0.8. The risk-free rate is 2.9% and the expected return on the S&P500 is 4%. Part 1 What is Amazon's cost of equity? 4+ decimals Submit Part 2 Now assume that the expected market risk premium is 4%. What is Amazon's cost of equity? 3+ decimals Submit
Review the following market information: Current Stock Market Return 11.25% Current T-Bill Price $979.43 Historic T-Bill Average Return 2.80% Historic Stock Market Average Return 8.10% Stock Beta 1.23 What is the required return (rounded to two places)?
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Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 50. Suppose the risk-free rate is 2.20% and analysts estimate that the market risk premium is 5.50%. Firm A justpaid a dividend of $1.80 per share. The analyst estimates the β of Firm A to be 1.22 and estimates the dividendgrowth rate to be 4.36% forever. If Firm A has 200,000 shares of common stock outstanding, what is the totalmarket value of Firm A’s equity (i.e., price per share times number of shares outstanding)? (Round youranswer up to the nearest whole number (i.e., no decimal places); for example, enter 112,304.874 or112,304.128 as 112305).
pm.4
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.

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