You own a portfolio that has a total value of $215,000 and invested it is invested in Stock D with a beta of .86 and Stock E with a beta of 1.39. The beta of your portfolio is equal to the market beta. What is the dollar amount of your Investment in Stock D?

Q: . Mubita is contemplating on investing in Stocks A and B with the following probability…

A: The CAPM model that is capital asset pricing model gives the required rate on the stock based on the…

Q: You have $12,260 to invest in a stock portfolio. Your choices are StockX with an expected return of…

A: Return on stock X is 14.2%. Return on stock Y is 8.61%. Let the amount invested in stock X is $A.…

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: You own a portfolio that is 39.3% invested in Stock X, 40.7% in Stock Y, and 20% in Stock Z. The…

A: Expected Return of the Portfolio = Weight of X *Return of X + Weight of Y * Return of Y + Weight of…

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: 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: Assume your portfolio consists of 50% of a stock with a beta of 0.423 and 50% of a stock with a beta…

A: Beta of first stock = 0.423 Beta of second stock = 0.400 Weight of both stocks = 0.50 Portfolio beta…

Q: An individual has $36000 invested in Stock A with a beta of 1.1 and another $35000 invested in Stock…

A: Stock A investment = 36000 Stock B investment =35000 Stock A beta =1.1 Stock B beta =1.4 Total…

Q: An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock…

A: A portfolio is a set of varied investments made by an investor. Its beta is computed as the weighted…

Q: An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a…

A: Investment in stock 1 = $20,000 Investment in stock 2 = $75,000 Total investment in both stocks =…

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 1Since Treasury bills are risk free, Beta is 0Beta of Mutual…

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 a portfolio that is invested 19 percent in Stock A, 32 percent in Stock B, and 49 percent…

A: Weight of stock A (WA) = 19% or 0.19Weight of stock B (WB) = 32% or 0.32Weight of stock C (WC) = 49%…

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: After learning the course, you divide your portfolio into three equal parts, with one part in…

A: The beta of overall portfolio is calculated as weighted proportion of beta into each respective…

Q: You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a…

A: Investors use beta as a tool for portfolio management and risk assessment. A portfolio with a higher…

Q: You own a portfolio that has $16,000 invested in Stock A and $17,000 invested in Stock B. The…

A: Investment in stock A (A) = $16,000 Investment in stock B (B) = $17,000 Expected return on stock A…

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: 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: Assume that you own a portfolio consisting of the following stocks: Stock Percentage of Portfolio…

A: The expected return on a portfolio calculates the expected value of a portfolio. The probability…

Q: Suppose you have a portfolio of Vestel and Turkcell with a beta of 1.8 and 0.9, respectively. If you…

A: The Answer states the computation of Portfolio Beta by taking the weighted average of individual…

Q: You have $12,287 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: The objective of this question is to determine the amount of money to be invested in Stock X to…

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 own a portfolio that has a total value of $195,000 and it is invested in Stock D with a beta of…

A: Part 2: Explanation:Step 1: Calculate the beta of the portfolio:Given that the portfolio's beta is…

Q: Stock 1 has a standard deviation of return of 6%. Stock 2 has a standard deviation of return of 2%.…

A: Formulas:

Q: An individual has $35,000 invested in a stock which has a beta of 0.8 and $40,000 invested in a…

A: In this question we need to calculate the beta of the portfolio. Beta of the Portfolio is Weighted…

Q: You have $56,000. You put 24% of your money in a stock with an expected return of 13%, $31,000 in a…

A: As per the given information: Total amount = $56,00024% of money invested in a stock with an…

Q: You own a portfolio that has $1,800 invested in Stock A and $2,900 invested in Stock B. If the…

A: Excel Spreadsheet:  Excel Workings:

Q: You have $19,256 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Total Amount invested = $19,256Return on Stock X (RX) = 13.08% or 0.1308Return on Stock Y (RY) =…

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: 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: Suppose you have invested $35,000 in stocks with a Beta of 0.9 and another $17,000 invested in…

A: A portfolio consists of various securities such as shares, bonds, commodities that help the…

Q: An investor is forming a portfolio by investing $8,000 in stock A which has a beta of 0.80, and…

A: Portfolio Beta is the weighted sum of the individual asset betas. Formula to calculate Portfolio…

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…

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…