Consider the following information and then calculate the
required rate of return for the Scientific Investment...
Consider the following information and then calculate the
required rate of return for the Scientific Investment Fund, which
holds 4 stocks. The market's required rate of return is 15 %, the
risk-free rate is 7 %, and the Fund's assets are as follows:
Stock Investment Beta:
A $ 200,000 1.50
B 300,000 -0.50
C 500,000 1.25
D 1,000,000 0.9
Consider the following information for the Global Investment
Fund, which holds 4 stocks. The market's required...
Consider the following information for the Global Investment
Fund, which holds 4 stocks. The market's required rate of return is
13.25%, the risk-free rate is 7.00%, and the Fund's assets are as
follows:
Stock
Investment
Beta
A
$ 200,000
1.50
B
300,000
−0.50
C
500,000
1.25
D
$1,000,000
0.75
What is the portfolio beta?
What is the market risk premium?
According to CAPM, what is the required rate of return for the
fund?
Consider the following information and then calculate the
required rate of return for the Global Equity...
Consider the following information and then calculate the
required rate of return for the Global Equity Fund, which includes
4 stocks in the portfolio. The market's required rate of return is
16.75%, the risk-free rate is 4.25%, and the Fund's assets are as
follows: Round your answer to two decimal places.
Stock
Investment
Beta
A
$205,000
1.55
B
$345,000
0.85
C
$565,000
–0.45
D
$1,115,000
1.98
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.96 million investment
fund. The...
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.96 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 400,000
1.50
B
500,000
(0.50)
C
1,260,000
1.25
D
2,800,000
0.75
If the market's required rate of return is 11% and the risk-free
rate is 3%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%
2. Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar...
2. Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$200,000
1.3
B
100,000
1.7
C
300,000
0.7
D
400,000
-0.35
Total investment
$1,000,000
The market's required return is 10% and the risk-free rate is
3%. What is the portfolio's required return? Round your answer to 3
decimal places. Do not round intermediate calculations.
___%
7. Suppose you are the money manager of a $4.55 million
investment fund. The fund consists...
Consider the following information about Stocks A and B:
Rate of Return if State Occurs
State...
Consider the following information about Stocks A and B:
Rate of Return if State Occurs
State of
Probability of
Economy
State of Economy
Stock A
Stock B
Recession
0.30
0.10
−
0.25
Normal
0.40
0.17
0.12
Irrational exuberance
0.30
0.11
0.45
The market risk premium is 8 percent, and the risk-free rate is
3 percent. (Round your answers to 2 decimal places. (e.g.,
32.16))
The standard deviation on Stock A's return is ___ percent, and
the Stock A beta...
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment...
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$300,000
1.35
B
150,000
1.5
C
500,000
0.75
D
50,000
-0.25
Total investment
1,000,000
The market's required return is 10% and the risk-free rate is
5%. What is the portfolio's required return? Round your answer to 3
decimal places. Do not round intermediate calculations.
%
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment...
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$300,000
1.25
B
200,000
1.50
C
300,000
0.80
D
200,000
-0.30
Total investment
$1,000,000
The market's required return is 11% and the risk-free rate is
3%. What is the portfolio's required return? Do not round
intermediate calculations. Round your answer to three decimal
places.
%
Consider a company with the following financial statement
information:
&nb
Consider a company with the following financial statement
information:
Balance Sheet
Cash
$140,000
Accounts payable $200,000
Marketable securities
200,000
Wages payable 100,000
Accounts receivable
40,000
Short-term debt 250,000
Inventory
1,000,000
Long-term debt 690,000
Fixed assets
900,000
Total liabilities $1,240,000
Common stock
950,000
Retained earnings 90,000
Total assets
$2,280,000
Total equity & liabilities $2,280,000
Income Statement
Sales $1,200,000
Cost of goods sold $400,000
Amortization $90,000
Interest $56,400
Earnings before taxes $653,600
Taxes $261,440
Net income $392,160
Shares outstanding...