Consider a portfolio with 83% in shares of Firestone Corp. and 17% in shares of Andromeda Inc. Find the beta of the portfolio if Firestone's beta is 1.1 and Andromeda's beta is 1.8. 1.49 1.63 1.62 01.31 1.22
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- Using the equity asset valuation model (CAPM) equation, determine the required return for the shares of the following companies, if the market return is 7.50% (Rm = 7.50%) and the risk-free asset return is 1.25% (RF = 1.25%). You must show all counts. Stock Beta SKT 0.65 COST 0.90 SU 1.42 AMZN 1.57 V 0.94Find the Beta for Stock Y given the Expected Return of Stock Y is 18.4% The expected return on the Market Portfolio is 28.4% and Risk-Free Rate is 4.5 %. Select one: a. 0.60 b. 0.56 c. None d. 0.90 e. 0.80You have a portfolio that is invested 19 percent in Stock A, 32 percent in Stock B, and 49 percent in Stock C. The betas of the stocks are .74, 1.29, and 1.48, respectively. What is the beta of the portfolio? 4 O.98 1.28 1.22 1.33 1.10
- Calculate the portfolio beta for the following portfolio: Stock A: $638 invested with a Beta of 1.3 Stock B: $225 invested with a Beta of 1.3 Stock C: $226 invested with a Beta of 0.6b) Calculate the beta of the following portfolio. Amount invested Stock Security Beta A RM6,700 1.58 B RM4,900 1.23 C RM8,500 0.79Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain.
- Consider an investment portfolio that consists of three different stocks, with the amount invested in each asset shownbelow. Assume the risk-free rate is 2.5% and the market risk premium is 6%. Use this information to answer thefollowing questions.Stock Weights BetasChesapeake Energy 25% 0.8Sodastream 50% 1.3Pentair 25% 1.0a) Compute the expected return for each stock using the CAPM and assuming that the stocks are all fairly priced.b) Compute the portfolio beta and the expected return on the portfolio.c) Now assume that the portfolio only includes 50% invested in Pentair and 50% invested in Sodastream (i.e., a twoassetportfolio). The yearly-return standard deviation of Pentair is 48% and the yearly-return standard deviation ofSodastream is 60%. The correlation coefficent between Pentair’s returns and Sodastream’s returns is 0.3 What is theexpected yearly-return standard deviation for this portfolio?Assume your portfolio consists of 50% of a stock with a beta of 1.436 and 50% of a stock with a beta of 0.532, what is the beta of your portfolio? (Hint: Weighted average)Please include the excel formula What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 200 shares of Stock B that sell for $21 per share? Input area: Shares of A 145 Share price of A $47 Shares of B 200 Share price of B $21 (Use cells A6 to B9 from the given information to complete this question.) Output area: Portfolio value Weight of A Weight of B
- You have a portfolio that is invested 23 percent in Stock A, 36 percent in Stock B, 41 percent in Stock C, and the remainder in a risk free asset. The betas of the stocks are.68, 1.23.and 1.52, respectively. What is the beta of the portfolio? O1.10 1.14 O1.22 O118 O1.38If you hold a portfolio made up of the following stocks: Investment Value Beta Stock X $4,000 1.5 Stock Y $5,000 1.0 Stock Z $1,000 .5 What is the beta of the portfolio? A. 1.00 B. 1.24 C. 1.33 D. 1.15What is the below portfolio's beta assuming you have equal amounts of money invested in each stock? Answer to two decimal places. Stock Beta Incom Corporation 1 Weyland-Yutani Industries 1.6 Sienar Fleet Systems 0.4 Tyrell Corporation 0.1 Soylent Corporation 1