You own a portfolio consisting of the following stocks. Calculate the expected return of the portfolio and the portfolio beta. a. 15.8% and .950 b. 18.8% and .945 c. 15.8% and .945 d. 17.8% and .945 O O a.. b.. C.. d.. STOCK 12345 PERCENTAGE OF PORTFOLIO 20% 30% 15% 25% 10% Given BETA 1.00 0.85 1.20 0.60 1.60 EXPECTED RETURN 16% 14% 20% 12% 24%

You own a portfolio consisting of the following stocks. Calculate the expected return of the portfolio and the portfolio beta. a. 15.8% and .950 b. 18.8% and .945 c. 15.8% and .945 d. 17.8% and .945 O O a.. b.. C.. d.. STOCK 12345 PERCENTAGE OF PORTFOLIO 20% 30% 15% 25% 10% Given BETA 1.00 0.85 1.20 0.60 1.60 EXPECTED RETURN 16% 14% 20% 12% 24%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...

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You own a portfolio consisting of the following stocks. Calculate the expected return of the portfolio and the portfolio beta. a. 15.8% and .950 b. 18.8% and .945 c. 15.8% and .945 d. 17.8% and .945 O O a.. b.. ė C. . d.. STOCK 1 23 N 2 3 4 PERCENTAGE OF PORTFOLIO 20% 30% 15% 25% 10% Given BETA 1.00 0.85 1.20 0.60 1.60 EXPECTED RETURN 16% 14% 20% 12% 24%
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If you hold a portfolio made up of the following stocks: Investment Value Beta Stock X $4,000 1.5 Stock Y $5,000 1.0 Stock Z $1,000 .5 What is the beta of the portfolio? A. 1.00 B. 1.24 C. 1.33 D. 1.15
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5. Your stock portfolio consists of the following investments: Company A B C Investment A. 1.73 B. 1.88 C. 2.03 D. 2.17 E. 2.40 $ 400 $ 600 $1,000 Standard Deviation 1.5 2.0 3.0 Beta 1.2 1.8 2.2 Expected Return 9% 10% 12% Using the appropriate measure of portfolio risk, calculate your portfolio level of risk.
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2. Consider stocks A and B with the following monthly returns: Stock 1 2 3 4 A -2% 3% 1% 6% 4% B 1% -2% 4% 5% 3% a. What is the expected return and risk of a portfolio composed of 30% A and 70% B? b. What is the contribution of each stock to portfolio's return and risk? c. What is the structure of the minimum risk portfolio? Compute its expected return and risk.
Mike Flannery holds the following portfolio: What is the portfolio's beta? Do not round your intermediate calculations.Stock Investment BetaA $150,000 1.40B $20,000 0.80C $130,000 1.00D $75,000 1.20Total $375,000 Question 6Select one: a. 1.02 b. 1.05 c. 1.28 d. 1.19 e. 1.43
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Consider the following information about three stocks: Rate of Return If State Occurs Probability of State of Economy .25 State of Economy Stock A Stock B Stock C Вoom .13 .29 .60 Normal .60 .08 .11 .13 Bust .15 .02 -18 -45 a-1.lf your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a- What is the variance? (Do not round intermediate calculations and round 2. your answer to 5 decimal places, e.g., .16161.) a- What is the standard deviation? (Do not round intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.70 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. If the expected inflation rate…
Qn4: Assume a two-stock portfolio created with $50,000 is invested in both HT and Collections. The expected returns are given below: Calculate the portfolio's return for each state of economy and fill them in the last column, under "Portfolio" (Hint: The portfolio's expected return is a weighted average of the returns of the portfolio's component assets). Calculate the portfolio's expected return (Hint: You have to incorporate the probability distribution of each state of economy). Calculate the portfolio's standard deviation. Economy Recession Below average Average Above average Boom Prob. HT 0.1 -27.0% 0.2 -7.0% 0.4 15.0% 0.2 30.0% 0.1 45.0% Coll 27.0% 13.0% 0.0% -11.0% -21.0% Portfolio
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