Mrs. Landis has a 2-stock portfolio with a total value of $530,000. $175,000 is invested in Stock A with a beta of 1.55 and the remainder is invested in Stock B with a beta of 1.25. What is her portfolio's beta?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. A. 1.17 B. 1.35 C. 1.59 D. 1.27 E. 1.46
Q: Johnny holds the following portfolio: Stock Investment Beta A $150,000 1.40 B $50,000 0.80 C…
A: The beta of a portfolio is the calculated by considering the weighted sum of betas of stocks in a…
Q: An individual has $15,000 invested in a stock with a beta of 0.6 and another $80,000 invested in a…
A: Stock 1 beta (B1) = 0.60 Stock 1 investment (W1) = $ 15,000 Stock 2 beta (B2) = 1.50 Stock 2…
Q: You own a stock portfolio invested 24 percent in Stock Q, 21 percent in Stock R, 44 percent in Stock…
A: Stock Portfolio weight Beta Q 24% 0.86 R 21% 0.92 S 44% 1.32 T 11% 1.77
Q: Emma holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as…
A: THERE ARE 3 MCQS ANSWERS WILL BE PROVIDED ONE BY ONE.
Q: A. An individual has $115,000 invested in a stock with a beta of 2.15, $30,000 invested in a stock…
A: In the given question we require to compute the beta of the portfolio. Portfolio beta is the…
Q: Michael holds a portfolio that has an expected return of 11.0%, a total value of $90,000, and a beta…
A: To determine the portfolio beta we need to multiply the percentage of the portfolio of each…
Q: Assume that expected return of the stock A in his portfolio is 13.2%. The risk premium on the stocks…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: An individual has $30,000 invested in a stock with a beta of 0.6 and another $50,000 invested in a…
A: Introduction: The term portfolio beta refers to a metric which is used in calculating the overall…
Q: An individual has $36000 invested in Stock A with a beta of 1.1 and another $35000 invested in Stock…
A: Stock A investment = 36000 Stock B investment =35000 Stock A beta =1.1 Stock B beta =1.4 Total…
Q: An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock…
A: A portfolio is a set of varied investments made by an investor. Its beta is computed as the weighted…
Q: An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a…
A: Investment in stock 1 = $20,000 Investment in stock 2 = $75,000 Total investment in both stocks =…
Q: assume that expected return of the stock A in Rachel's portfolio is 13.6% this year.The risk premium…
A: Computation:
Q: An individual has $45,000 invested in a stock with a beta of 0.5 and another $30,000 invested in a…
A: Portfolio beta = (beta of the 1st stock * its weight in the portfolio) + (beta of the 2nd stock *…
Q: Jane invests 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B…
A: Given information, Weight in stock A (WA) = 40% Weight in stock B (WB) = 60% Beta of stock A (βA) =…
Q: Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and…
A: CSH share= 125 shares @$20 each EJH share= 60 shares @31 per share Initial portfolio weights CSH…
Q: An individual has $15,000 invested in a stock with a beta of 0.3 and another $40,000 invested in a…
A: Portfolio beta can be calculated by multiply the weight of stock with individual beta of stock.…
Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has a…
A:
Q: An individual has $45,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a…
A: Given information: Stock 1 is $45,000 and beta of 0.6 Stock 2 is $75,000 and beta of 1.9
Q: stor holds a diversified portfolio with a beta equal to 1.2, consisting of a P1,000 investment in…
A: Beta of portfolio is weighted average beta of all stocks in the portfolio.
Q: Suppose you have four stocks in your portfolio and the beta of your portfolio is 1.06. You have…
A: Beta of Portfolio = Beta of A * Weight of A +Beta of B * Weight of B+Beta of C * Weight of C+Beta of…
Q: ou are an active investor in the securities market and you have established an investment portfolio…
A: Capital gain is determined by deducting the initial value of stock or asset from the net proceeds of…
Q: Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as…
A: a. Makissi Corp would have the least amount of market risk since it has the lowest beta b. Tobotics…
Q: A person has $25,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock…
A: Portfolio beta is a measure of the overall systematic risk of a portfolio of investments. It equals…
Q: ou own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 35 percent in Stock…
A: Beta is the measure of systematic risk of investing in a particular stock or a portfolio. It…
Q: Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as…
A: Standard deviation is useful to measure the standalone risk, and beta whereas measures any stock's…
Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has…
A: A mixture of different kinds of funds and securities for the investment is term as the portfolio.
Q: Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A…
A: Given: Total value =$100,000 Invested in stock A = $55,000 Stock A Beta = 0.75 Stock B beta = 1.79
Q: Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well…
A: A. Calculate sensitivity of Stock as below: Resultant Table: Hence, Stock FC will have lowest…
Q: Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is…
A: Portfolio beta (PB) = 0.88 Stock A beta (AB) = 0.50 New stock beta (NB) = 1.45 Weight of stock A or…
Q: She has $71,000 invested in stock A with a beta of 1.30 and another $56,000 invested in stock B with…
A: Portfolio beta is calculated using weighted Average beta Weight of the stock x Beta
Q: Kelly invested in two stocks. She put 22% into stock A, which has an expected return of 7.3%, and…
A: Expected return refers to the return earn by an investor on the amount invested during a period of…
Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has a…
A: CAPM model is used to calculate to cost of capital for common equity. It is calculated by increasing…
Q: You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R, 5 percent in Stock…
A: Portfolio Beta is a measure of the overall systematic risk of the portfolio of the investments.
Q: What is the portfolio’s expected return?
A: Portfolio expected return is the return that is expected to generate from a portfolio. Generally…
Q: Willis currently has $190,000 invested in a four-stock portfolio with a beta coefficient equal to…
A: Portfolio beta before stock sale (BP) = 1.50 Portfolio value (P) = $ 190,000 Value of sold stock…
Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has…
A: A model that represents the relationship of the required return and beta of a particular asset is…
Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has a…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Debra is an investor just starting out in the stockmarket. She starts with a purchase of $10,000 of…
A: The diversification benefits will be reflecting the elimination of unsystematic risk in the…
Q: In your portfolio, you own Delta Air Lines and Coca Cola Company stock in which you initially…
A: Here, Price at the beginning of the month of DAL is $85 Price at the end of the month of DAL is $90…
Q: Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and…
A: Given that: The portfolio consists of 100 shares of CSH and 50 shares of EHJ Purchase price $20and…
Q: An investor has a three-stock portfolio with $25,000 invested inApple, $50,000 invested in Ford, and…
A: Stocks Investment Estimated Beta Apple 25000.00 1.20 Ford 50000.00 0.80 Walmart 25000.00…
Q: An individual has $50,000 invested in a stock with a beta of 0.7 and another $50,000 invested in a…
A: Beta coefficient shows the systematic risk of the assets. The beta factor shows the systematic risk…
Q: Sara just bought a stock for $378.47, and she expects to get a dividend of $100 and $200 for years…
A: An individual expects to earn a return from the investment in stock both in the form of capital…
Q: An individual has $3500 invested in a stock that has a beta of 0.8 and $4000 invested in a stock…
A: Total amount invested = sum of amount invested in specific stock Total amount invested =$3,500 +…
Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mrs. Landis has a 2-stock portfolio with a total value of $520,000. $175,000 is invested in Stock A with a beta of 1.25 and the remainder is invested in Stock B with a beta of 1.25. What is her portfolio's beta?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. Group of answer choices 1.01 1.30 1.25 1.39 1.15She has $71,000 invested in stock A with a beta of 1.30 and another $56,000 invested in stock B with a beta of .60. If these are the only two investments in her portfolio, what is her portfolio’s beta?An individual has $15,000 invested in a stock with a beta of 0.3 and another $65,000 invested in a stock with a beta of 1.7. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
- An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock B with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? (Express your answer to two decimal places. i.e. a beta of one is entered as 1.00).A person has $25,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.An individual has $3500 invested in a stock that has a beta of 0.8 and $4000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio’s beta?
- An individual has $36000 invested in Stock A with a beta of 1.1 and another $35000 invested in Stock B with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta?An individual has $35,000 invested in a stock which has a beta of 0.8 and $40,000invested in a stock with a beta of 1.4. If these are the only two investments in herportfolio, what is her portfolio’s beta? DO NOT USE EXCEL) An investor has $5,000 invested in a stock which has an estimated beta of 1.2, and another $15,000 invested in the stock of the company for which she works. The risk-free rate is 6 percent and the market risk premium is also 6 percent. The investor calculates that the required rate of return on her total ($20,000) portfolio is 15 percent. What is the beta of the stock of the company for which she works?
- 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% 1.500 42.00% Li Corp. (LC) 15% 1.100 45.00% Baque Co. (BC) 30% 0.300 49.00% Brandon calculated the portfolio’s beta as 0.818 and the portfolio’s required return as 8.4990%. 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 Baque Co. The risk-free rate is 4%, and the market risk premium is 5.50%. According to Brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (Note: Do not round your…Neha is an analyst at a wealth management firm. One of her clients holds a $7,500 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. 35% 0.750 0.53% Arthur Inc. 20% 1.400 0.57% Li Corp. 15% 1.300 0.60% Transfer Fuels Co. 30% 0.300 0.64% Neha calculated the portfolio’s beta as 0.828 and the portfolio’s expected return as 8.55%. Neha thinks it will be a good idea to reallocate the funds in her client’s portfolio. She recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4.00%, and the market risk premium is 5.50%. 1. According to Neha’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? 0.86% 0.67% 1.07% 0.99%…Cheyenne holds a $5,000 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 Andalusian Limited (AL) $1,750 0.90 15.00% Tobotics Inc. (TI) $1,000 1.70 11.50% Water and Power Co. (WPC) $750 1.15 18.00% Makissi Corp. (MC) $1,500 0.50 25.50% Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Water and Power Co. Makissi Corp. Tobotics Inc. Andalusian Limited Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Andalusian Limited Makissi Corp. Tobotics Inc. Water and Power Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Cheyenne’s portfolio’s beta and required return? Fill in the…