Question

**Question 4** (1 point)

John invested the following amounts in three stocks:

Security | Investment | Beta |
---|---|---|

Stock A | $752,035 | 1.74 |

Stock B | $116,109 | 2.43 |

Stock C | $707,174 | 1.83 |

Calculate the beta portfolio.

*Round the answers to two decimal places.*

Answer #1

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John invested the following amounts in three stocks: Security
Investment Beta Stock A $112,580 1.65 Stock B $783,863 0.86 Stock C
$777,637 1.81 Calculate the beta portfolio.
Please explain how to find the weights and weighted beta.

You hold a portfolio with the following securities:
Security: Stock A
Percent of portfolio: 33%
Beta: 1.83
Security: Stock B
Percent of portfolio: 18%
Beta: 1.55
Security: Stock C
Percent of portfolio: Please calculate it
Beta: 2.23
Calculate the beta portfolio.
Round the answers to two decimal places.
A) 1.88
B) 1.98
C) 1.78
D) 1.68

Your investment club has only two stocks in its portfolio.
$50,000 is invested in a stock with a beta of 0.9, and $75,000 is
invested in a stock with a beta of 1.7. What is the portfolio's
beta? Do not round intermediate calculations. Round your answer to
two decimal places.

Your investment club has only two stocks in its portfolio.
$50,000 is invested in a stock with a beta of 0.8, and $30,000 is
invested in a stock with a beta of 2.0. What is the portfolio's
beta?
AA Corporation's stock has a beta of 1.1. The risk-free rate is
4%, and the expected return on the market is 13%. What is the
required rate of return on AA's stock? Do not round intermediate
calculations. Round your answer to two...

1. Your investment club has only two stocks in its portfolio.
$30,000 is invested in a stock with a beta of 0.5, and $45,000 is
invested in a stock with a beta of 1.8. What is the portfolio's
beta? Do not round intermediate calculations. Round your answer to
two decimal places.
2. AA Corporation's stock has a beta of 0.8. The risk-free rate
is 3%, and the expected return on the market is 11%. What is the
required rate of...

You have just invested in a portfolio of three stocks. The
amount of money that you invested in each stock and its beta are
summarized below.
Stock
Investment
Beta
A
$188,000
1.51
B
282,000
0.52
C
470,000
1.35
Calculate the beta of the portfolio and use the capital asset
pricing model (CAPM) to compute the expected rate of return for the
portfolio. Assume that the expected rate of return on the market is
18 percent and that the risk-free rate...

You have just invested in a portfolio of three stocks. The
amount of money that you invested in each stock and its beta are
summarized below. Stock Investment Beta A $210,000 1.47 B 315,000
0.61 C 525,000 1.16 Calculate the beta of the portfolio and use the
Capital Asset Pricing Model (CAPM) to compute the expected rate of
return for the portfolio. Assume that the expected rate of return
on the market is 16 percent and that the risk-free rate...

Andy holds a portfolio with the following securities:
Security: Stock A
Investment: 708,504
Return: 13.2%
Security: Stock B
Investment: 249,634
Return: 9.0%
Security: Stock C
Investment: 279,122
Return: 8.1%
Calculate the expected return of portfolio.
HINT: Round the answers to ONE decimal places in percentage
form.
A) 10.2%
B) 11.2%
C) 10.1%
D) 12.2%

A portfolio has the following stocks:
Stock
Amount Invested
Stock's Beta
A
$2,000
1.4
B
$8,000
1.2
C
$15,000
1.6
Suppose that the risk-free rate of return is 4% and the market
return is 20%.
(1) What are the weights for Stocks A, B and C, respectively?
(
2) What is the portfolio’s beta?
(3) What is the expected return for Stock A?
(4) What is the expected return for the portfolio?

1a. Your investment club has only two stocks in its portfolio.
$50,000 is invested in a stock with a beta of 0.9, and $75,000 is
invested in a stock with a beta of 1.3. What is the portfolio's
beta? Do not round intermediate calculations. Round your answer to
two decimal places.
1b. AA Corporation's stock has a beta of 0.4. The risk-free rate
is 2%, and the expected return on the market is 12%. What is the
required rate of...

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