Question

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.

Answer #1

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.

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?

You have the following information on two securities in which
you have invested money:
Security Expected Return
Xerox 15% Kodak 12%
Standard deviation
4.5% 3.8%
Beta %Invested
1.20 35% 0.98 65%
The rate of return on the market portfolio is 17% and the
risk-free rate of return is 7.5%.
a) Compute the expected return on the portfolio.
b) Compute the beta of the portfolio.
c) Compute the required rate of return on the portfolio using
the CAPM.
d) Is the...

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

A. You own a $20,000 portfolio that is invested in a risk-free
security and Stock A. The beta of Stock A is 1.60 and the portfolio
beta is 1.00. What is the amount of the investment in Stock A?
B. Stock A has a beta of 2.0 and an expected return of 13.0
percent. Stock B has a beta of 1.12 and an expected return of 13.70
percent. At what risk-free rate would these two stocks be correctly
priced?

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...

STOCK PERCENTAGE OF PORTFOLIO
BETA EXPECTED RETURN
1 20% 0.95 16%
2 10% 0.90 13%
3 25% 1.15 20%
4 5% 0.70 12%
5 40% 1.55 25%
(Portfolio beta and security market line) You own a portfolio
consisting of the following stocks:. The risk-free rate is 4
percent.Also, the expected return on the market portfolio is 10
percent.
a. Calculate the expected return of your portfolio. (Hint: The
expected return of a portfolio equals the weighted average of the
individual...

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...

1. You have a portfolio that has equal amounts invested in the
following common stocks. What is the beta of the
portfolio?
Security
Beta
Bank of America
1.96
CA Technologies
1.24
Toyota Motor Corporation
0.65
International Business Machines
0.62
A.1.05
B.1.00
C.1.12
D.1.19
2. Logtec is buying new equipment that has the following cash
flows:
Year
0
1
2
3
Cash Flow
-$500
$100
$200
$250
What is the NPV if the interest rate is $9%?
A. -$17.7
B....

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.

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