Mike Flannery holds the following portfolio: Stock Investment Beta A P150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total P375,000 What is the portfolio's beta? Group of answer choices 1.56 1.29 1.17 1.06 1.42
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49
Mike Flannery holds the following portfolio:
Stock |
Investment |
Beta |
A |
P150,000 |
1.40 |
B |
50,000 |
0.80 |
C |
100,000 |
1.00 |
D |
75,000 |
1.20 |
Total |
P375,000 |
|
What is the portfolio's beta?
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- Mike Flannery holds the following portfolio: What is the portfolio's beta? Do not round your intermediate calculations.Stock Investment BetaA $150,000 1.40B $20,000 0.80C $130,000 1.00D $75,000 1.20Total $375,000 Question 6Select one: a. 1.02 b. 1.05 c. 1.28 d. 1.19 e. 1.43Megan Ross holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta? Group of answer choices 1.06 1.17 1.29 1.42 1.569. Portfolio beta and weights Brandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. (AI) 35% 0.750 38.00% Arthur Trust Inc. (AT) 20% 1.400 42.00% Li Corp. (LC) 15% 1.300 45.00% Transfer Fuels Co. (TF) 30% 0.500 49.00% Brandon calculated the portfolio’s beta as 0.888 and the portfolio’s required return as 12.6600%. Brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 6%, and the market risk premium is 7.50%. A. According to Brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s…
- 48 A company holds the following stock portfolio: Stock % of Total Portfolio Beta Coefficient W 20% .8 X 40% .6 Y 30% 1.0 Z 10% 2.0 The beta of the portfolio is Group of answer choices 1.1 .9 2.0 .8What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%11. You hold the positions in the table below.COMPANY PRICE # SHARES BETAGoodmonth $25.00 200 + 3.0Icestone $20.00 750 – 1.0Bridgerock $50.00 600 + 2.0A. What is the beta of your portfolio?
- QUESTION 10 What is the expected return of the three-stock portfolio described below? Common Stock Market Value Expected Return Xerox 125,000 8% Yelcon 250,000 25% Zwiebal 175,000 16% a. 16.45% b. 12.72% c. 18.27% d. 14.33% e. 16.33%5) Assume that stock market returns do not resemble a single-index structure. An investment fund analyzes 150 stocks in order to construct a mean-variance efficient portfolio constrained by 300 investments. They will need to calculate ____________ covariances. A) 44,850 B) 150 C) 22,500 D) 11,175 Choose the correct answer with justification.16 [Question text] What is the beta of the following portfolio? Stock Amount invested (RM) Security beta A 14,200 1.39 B 23,900 0.98 C 8,400 1.52 Select one: A. 1.01 B. 1.05 C. 1.20 D. 1.12
- 8. Portfolio risk and return Emma holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 15.00% Kulatsu Motors Co. (KMC) $2,000 1.30 11.00% Three Waters Co. (TWC) $1,500 1.10 20.00% Flitcom Corp. (FC) $3,000 0.50 19.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? a. Omni Consumer Products Co. b. Flitcom Corp. c. Three Waters Co. d. Kulatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? a. Flitcom Corp. b. Three Waters Co. c. Kulatsu Motors Co. d. Omni Consumer Products Co. If the risk-free rate is 4% and the market…27. You have developed the following data on three stocks:Stock Standard Deviation BetaA 0.15 0.79B 0.25 0.61C 0.20 1.29 If you are a risk minimizer, you should choose Stock ____ if it is to be held in isolation and Stock ____ ifit is to be held as part of a well-diversified portfolio.a. A; Ab. A; Bc. B; Ad. C; Ae. C; BJohnny holds the following portfolio:Stock Investment BetaA $150,000 1.40B $50,000 0.80C $100,000 1.00D $75,000 1.20Johnny plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By howmuch will the portfolio beta change? (Please state your answer in 2 decimal points)