Question

A stock has a beta of 1.20 and an expected return of 14 percent. a risk-free asset currently earns 3 percent.

What is the expected return on a portfolio that is equally invested in the two assets? ( do not round intermediate calculations and round your answer to 2 decimal places)

If a portfolio of the two assets has a beta of .72 ,what are the portfolio weights?( do not round intermediate calculations and round your answer to 4 decimal places)

If the portfolio of the two assets has an expected return of 10 percent, what is its beta?( do not round intermediate calculations and round your answer to 3 decimal places)

Answer #1

Stock A has a beta of 1.2 and an expected return of 10%. The
risk-free asset currently earns 4%. If a portfolio of the two
assets has an expected return of 6%, what is the beta of the
portfolio? A) 0.3 B) 0.4 C) 0.5 D) 0.6 E) 0.7

Suppose the risk-free
rate is 4.8 percent and the market portfolio has an expected return
of 11.5 percent. The market portfolio has a variance of .0442.
Portfolio Z has a correlation coefficient with the market
of .34 and a variance of .3345
According to the
capital asset pricing model, what is the expected return on
Portfolio Z? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)

A stock has an expected return of 10.2 percent, the risk-free
rate is 5 percent, and the market risk premium is 9 percent. What
must the beta of this stock be? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.) Multiple Choice .5778 .7562 .5168 .4333 .6008

A stock has a beta of 0.7 and an expected return of 11.1
percent. If the risk-free rate is 4.7 percent, what is the market
risk premium? (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.)

ou are constructing a portfolio of two assets. Asset A has an
expected return of 12 percent and a standard deviation of 24
percent. Asset B has an expected return of 18 percent and a
standard deviation of 54 percent. The correlation between the two
assets is 0.20 and the risk-free rate is 4 percent. What is the
weight of each asset in the portfolio of the two assets that has
the largest possible Sharpe ratio? (Do not round
intermediate...

A stock has a beta of 1.3 and an expected return of 14%. The
risk free rate is 2% and the expected return on the market
portfolio is 9%. How much better (or worse) is the expected return
on the stock compared to what it should be according to the
CAPM?
Enter answer in percents, accurate to two decimal places.

You own a portfolio equally invested in a risk-free asset and
two stocks. One of the stocks has a beta of 1.2 and the total
portfolio is equally as risky as the market.
What must the beta be for the other stock in your portfolio?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Beta

You own a portfolio equally invested in a risk-free asset and
two stocks. One of the stocks has a beta of 1.15 and the total
portfolio is equally as risky as the market.
What must the beta be for the other stock in your portfolio?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Beta

Suppose that the S&P 500, with a beta of 1.0, has an
expected return of 14% and T-bills provide a risk-free return of
5%.
a. What would be the expected return and beta
of portfolios constructed from these two assets with weights in the
S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0?
(Leave no cells blank - be certain to enter "0" wherever
required. Do not round intermediate calculations. Enter the value
of Expected return...

Q1/A stock has an expected return of 11.7 percent and a beta of
1.54, and the expected return on the market is 8.4 percent. What
must the risk-free rate be? (Enter answer in percents, not in
decimals.)
Q2/You want to create a portfolio equally as risky as the
market, and you have $500,000 to invest. Information about the
possible investments is given below:
Asset
Investment
Beta
Stock A
$149,241
0.82
Stock B
$134,515
1.36
Stock C
--
1.44
Risk-free asset...

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