You own the portfolio of five stocks shown below. 2 3 4 5 6 A Human Genome Frozen Food Express Molecular Device Pandemic Busters Zoom Technologies Portfolio Beta Required Return B Value $9,600 $ 11,100 $ 6,800 $ 9,200 $ 14,100 Beta 0.93 1.35 1.27 1.28 0.58 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places.
You own the portfolio of five stocks shown below. 2 3 4 5 6 A Human Genome Frozen Food Express Molecular Device Pandemic Busters Zoom Technologies Portfolio Beta Required Return B Value $9,600 $ 11,100 $ 6,800 $ 9,200 $ 14,100 Beta 0.93 1.35 1.27 1.28 0.58 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places.
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
Related questions
Question
Rakesh
Transcribed Image Text:You own the portfolio of five stocks shown below
1
2
3
4
5
6
A
Human Genome
Frozen Food Express
Molecular Device
Pandemic Busters.
Zoom Technologies
Portfolio Beta
Required Return
B
Value
$9,600
$11,100
$ 6,800
$ 9,200
$14,100
Beta
0.93
1.35
1.27
1.28
0.58
Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected
to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio?
Note: Do not round intermediate calculations and round your answers to 2 decimal places.
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