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4. Based on the following information Calculate Rate of Return if State Occurs Stock B State of Economy Probability of State of Economy Stock A Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Вoom 0.25 0.13 0.29

4. Based on the following information Calculate Rate of Return if State Occurs Stock B State of Economy Probability of State of Economy Stock A Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Вoom 0.25 0.13 0.29

Quickbooks Online Accounting
Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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Fnan301FinalExamFall2021 - Microsoft Word File Home Insert Page Layout References Mailings Review View ది 第Find ▼ AA Cut Calibri (Body) - 11 Aa 三,三, 章 T AaBbCcDc AaBbCcDc AaBbC AaBbCc AABI AaBbCcl AaBbCcD E Copy a Replace Paste в г U - abe x, x' I Normal 1 No Spaci... Change Styles VFormat Painter Heading 1 Heading 2 Title Subtitle Subtle Em... A Select - Clipboard Font Paragraph Styles Editing 4. Based on the following information Calculate State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Вoom 0.25 0.13 0.29 a) The expected return of Stock A b) The expected return of Stock B c) The expected return of Portfolio where you invest $35,000 in Stock A and $45,000 in Stock B d) Suppose Stock A has a beta of 0.8 and Stock B has a beta of 1.3. If you invest $35,000 in Stock A and $45,000 in Stock B, what is the beta of this portfolio? e) Expected return on the market (RM) is 10% and the risk-free (r;) is 4%. What must the the expected return on the portfolio according to CAPM? (Use the beta you have calculated in section d) for CAPM) Page: 4 of 4 Words: 695 English (U.S.) 130% - final emine Ekran Görüntüleri 9 My Questions | bartle... W Fnan301FinalExamFal. A 2021-01-15 (11).png -. a 4)) 12:59
Transcribed Image Text:Fnan301FinalExamFall2021 - Microsoft Word File Home Insert Page Layout References Mailings Review View ది 第Find ▼ AA Cut Calibri (Body) - 11 Aa 三,三, 章 T AaBbCcDc AaBbCcDc AaBbC AaBbCc AABI AaBbCcl AaBbCcD E Copy a Replace Paste в г U - abe x, x' I Normal 1 No Spaci... Change Styles VFormat Painter Heading 1 Heading 2 Title Subtitle Subtle Em... A Select - Clipboard Font Paragraph Styles Editing 4. Based on the following information Calculate State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Вoom 0.25 0.13 0.29 a) The expected return of Stock A b) The expected return of Stock B c) The expected return of Portfolio where you invest $35,000 in Stock A and $45,000 in Stock B d) Suppose Stock A has a beta of 0.8 and Stock B has a beta of 1.3. If you invest $35,000 in Stock A and $45,000 in Stock B, what is the beta of this portfolio? e) Expected return on the market (RM) is 10% and the risk-free (r;) is 4%. What must the the expected return on the portfolio according to CAPM? (Use the beta you have calculated in section d) for CAPM) Page: 4 of 4 Words: 695 English (U.S.) 130% - final emine Ekran Görüntüleri 9 My Questions | bartle... W Fnan301FinalExamFal. A 2021-01-15 (11).png -. a 4)) 12:59
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