Question

Cynthia has three stocks in her portfolio (details below). Number of Shares    Current Price             Beta            &nbs

Cynthia has three stocks in her portfolio (details below).

Number of Shares    Current Price             Beta               Return

Stock A                              75                                       120                          1.1                 9%

Stock B                              100                                     45                            .95                7%

Stock C                              40                                       16                            .70                5.5%

What is Cynthia’s portfolio beta? __________ What is her portfolio return? __________

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution.>

I have solved this question in Excel. The formula used are written along with the values. If you still have any doubt, kindly ask in the comment section.

The portfolio beta will be calculated by multiplying the weight of the stock and the beta of the stock and adding it.

The portfolio return will be calculated by multiplying the weight of the stock and the return of the stock and adding it.

Portfolio beta = 0.96

Portfolio Return = 7.42%

Note: Give it a thumbs up if it helps! Thanks in advance!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Collette has four different stocks in her portfolio. She owns 79 shares of Stock A with...
Collette has four different stocks in her portfolio. She owns 79 shares of Stock A with a market price of $41.00, 137 shares of Stock B which is currently at $66.00 per share, 163 shares of Stock C which is listed at $87.00 per share, and 259 shares of Stock D, with a price of $75.00 per share. If the betas and returns for the four stocks are as follows, What is Collette ’s portfolio beta and portfolio return? Stock...
Ellen has three stocks in her portfolio. She owns 200 shares of Stock A, currently selling...
Ellen has three stocks in her portfolio. She owns 200 shares of Stock A, currently selling at $28.00 per share, 150 shares of Stock B, priced at $56.00 per share, and 75 shares of Stock C, which is worth $36.00 per share. If the betas of the three stocks are as follows, what is Ellen’s portfolio beta? ______________ Beta Stock A 1.38 Stock B .96 Stock C 1.19
An investor forms a portfolio of two stocks, Alpha and Beta. Information regarding the two stocks...
An investor forms a portfolio of two stocks, Alpha and Beta. Information regarding the two stocks is shown below: STOCK: Expected Return Standard Deviation Alpha 8.00% 30.00% Bravo 9.00% 50.00% The correlation between returns on Alpha and Bravo is 0.30. The investor will put 60% of her wealth in Alpha and the 40% of her wealth in Bravo. What is the standard deviation of the investor’s portfolio? 30.66% 27.66% 29.13% 31.17% 24.61%
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000...
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The current share prices and expected returns ofApple, Cisco, and Colgate-Palmolive are, respectively, $ 506 $ 25 $ 100 and 12 % 10 % 8 % a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $ 22 Cisco...
7. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her...
7. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $2,625 0.90 18.00% Zaxatti Enterprises (ZE) $1,500 1.70 11.00% Western Gas & Electric Co. (WGC) $1,125 1.10 18.00% Flitcom Corp. (FC) $2,250 0.60 25.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute...
A portfolio consists of Stock Aand Stock B. Data for the 2 stocks is shown below...
A portfolio consists of Stock Aand Stock B. Data for the 2 stocks is shown below Stock A: expected return 12% Stock A: standard deviation 40% Stock B: expected return 14% Stock B: standard deviation 60% Correlation between A and B 0.35 Stock A beta             0.90 Stock B beta             1.20 % portfolio in Stock A 45% % portfolio in Stock B 55% A Calculate the expected return of the portfolio portfolio : expected return B Calculate the standard...
An investment portfolio consists of four stocks. The purchase price, current price, and number of shares...
An investment portfolio consists of four stocks. The purchase price, current price, and number of shares are reported in the following table. Stock Purchase Price/Share Current Price/ Share Number of Shares Holiday Trans 15.50 17.00 500 NY Electric 18.50 20.25 200 KY Gas 26.75 26.99 500 PQ Soaps 42.25 45.50 300 Construct a weighted average of price relatives as an index of the performance of the portfolio to date. Interpret this index.
Excel Online Structured Activity: CAPM, portfolio risk, and return Consider the following information for three stocks,...
Excel Online Structured Activity: CAPM, portfolio risk, and return Consider the following information for three stocks, Stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 8.70 % 16 % 0.8 B 10.30 16 1.2 C 11.50 16 1.5 Fund P has one-third of its funds invested in each of the...
. Portfolio risk and return Emma holds a $5,000 portfolio that consists of four stocks. Her...
. Portfolio risk and return Emma holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $1,750 0.90 12.00% Tobotics Inc. (TI) $1,000 1.30 12.00% Water and Power Co. (WPC) $750 1.20 18.00% Makissi Corp. (MC) $1,500 0.40 19.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least...
Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as...
Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table : Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 9.00% Tobotics Inc. (TI) $2,000 1.50 11.50% Three Waters Co. (TWC) $1,500 1.15 20.00% Mainway Toys Co. (MTC) $3,000 0.30 22.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would contribute the least market risk...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT