You want to create a portfolio equally as risky as the market, and you have $1,200,000 toinvest. Consider the following information:AssetStock AStock BStock CRisk-free assetWhat is the investment in Stock C?InvestmentInvestment$300,000$ 240,000InvestmentBeta0.701.101.50What is the investment in risk-free asset?

Total investment=$1200000Investment in A=$300000Investment in B=$240000

You want to create a portfolio equally as risky as the market, and you have $1,200,00 nvest. Consider the following information: Asset Stock A Stock B Stock C Risk-free asset Investment $300,000 $ 240,000 What is the investment in Stock C? Investment Beta 0.70 1.10 1.50

You want to create a portfolio equally as risky as the market, and you have $1,200,00 nvest. Consider the following information: Asset Stock A Stock B Stock C Risk-free asset Investment $300,000 $ 240,000 What is the investment in Stock C? Investment Beta 0.70 1.10 1.50

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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You have $122,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.26, and Stock Y has an expected return of 9.5 percent and a beta of 1.00. a. How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the beta of your portfolio?
You own a portfolio that has a total value of $195,000 and it is invested in Stock D with a beta of .93 and Stock E with a beta of 1.35. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D? Multiple Choice $28,437.50 $16,250.47 $162,500.00 $24,375.23 $32,500.00
You want to create a portfolio equally as risky as the market, and you have $5M to invest. Given the information below, what is your investment in the risk-free asset? Asset Stock A Stock B Stock C Risk-free Asset $0.8M $0.7M $0.9M $1.1M Investment $1M $2M Beta 0.7 1.25 1.5
Kelly has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q 1.5 $80,000 Stock R 2.0 $50,000 Stock S 0.85 $70,000 Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Kelly’s investment portfolio?
You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, fill in the rest of the following table: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Asset Stock A Stock B Stock C Risk-free asset $ $ Investment 120,000 220,000 Betal 1.00 1.20 1.40
The following expected return and the standard deviation of current returns are known: Security (i) Expected Return Standard Deviation βi A 0.20 0.12 1.1 B 0.12 0.10 0.8 T-Bills 0.05 0 0 Market Portfolio 0.20 0.15 1 Required: How will you invest $1000 in riskless T-bills and the risky assets in the Market Portfolio to maintain a standard deviation of 10%.
- You have 100.000$ to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.5 percent. If D . has an expected return of 13.2 percent, F has an expected return 9.5 percent, and the risk-free rate is 3.8 percent, and if you invest 50.000$ in Stock D, how much will you invest in Stock F?
This question will be sent to you You still have $14,000 invested in TGT and $8,000 invested in JCP. If the beta of TGT is 0.65 and the portfolio beta is 1, what is the beta of JCP?
Please do fast ... ASAP..fast.
ou want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Investment Beta Stock A $135,000 0.65 Stock B $270,000 1.35 Stock C 1.50 Risk-free asset Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.) (Click to select) $298,500 $167,500 $310,440 $283,575 $286,560 (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.) (Click to select) $196,500 $188,640 $204,360 $327,500 $186,675
You invest 50% of your wealth in risky asset A and 50% in the risk-free asset. E(ra) is 10% and OA is 16%, while the risk- ree rate is 3%. The expected return on your portfolio is________ while the standard deviation is_________ Multiple Choice 6.50%,; 8.00% 7.90%; ,11.20% 5.80%; ,6.40% 7.20%; ,9.60%
. E(RI) = .15(.11) + .55(.18) + .30(.08) Using CAPM to determine the expected rate of return for risky assets, consider the following example stocks, assuming that you have already compute the betas Stock Beta WND 0.80 STA 1.35 CTE 1.15 DUY 1.20 EVN -0.20 Stock WND the economy’s RFR to be 6 percent (0.06) and the expected return on the market portfolio (E(RM)) to be 8 percent (0.08) Stock STA, the economy’s RFR to be 5percent (0.05) and the expected return on the market portfolio (E(RM)) to be 7 percent(0.07) Assume that all the other stocks is as follows since we expect the economy’s RFR to be 5 percent (0.05) and the expected return on the market portfolio (E(RM)) to be 9 percent (0.09),

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