You want to create a portfolio equally as risky as themarket, and you have $1,000,000 to invest. Giventhis information, fill in the rest of the following table:(Do not round intermediate calculations and roundyour answers to 2 decimal places, e.g., 32.16.)AssetStock AStock BStock CRisk-free assetInvestment Beta$ 195,000$ 340,000$$0.901.151.23

In the realm of investments beta is a measure of risk. A portfolio that is as risky as the market…

Answered: You want to create a portfolio equally…

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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Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.30 B 150,000 1.70 C 500,000 0.70 D 50,000 -0.20 Total investment $1,000,000 The market's required return is 11% 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.
None
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
man.3
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.
H3. Show proper step by step calculation
step by step explaination (no excel)
16. Assume the betas for securities A, B, and C are as shown here. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Security A B C .673 Beta If you have a portfolio with $30,000 invested in each of Investment A, B, and C, what is your portfolio beta? Using the portfolio beta and assuming a risk-free rate of 5%, what would you expect the return of your portfolio to be if the market earned 20.8% next year? Declined 19.6%? The beta of your portfolio is (Round to three decimal places.) The return of your portfolio to be if the market earned 20.8% is If the market earned 20.8%, the value of your portfolio is $ The return of your portfolio to be if the market declined 19.6% is If the market declined 19.6%, the value of your portfolio is $ 1.62 0.63 - 0.23 (Round to the nearest dollar.) %. (Round to two decimal places and enter as a negative number if the return decreased.) %. (Round to two decimal places and enter…
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Beta A B Dollar investment $250,000 1.35 150,000 1.60 400,000 0.85 -0.35 misidered to have low risk. C D Total investment 200,000 $1,000,000 The market's required return is 10% 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. %
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