What is the beta for the following portfolio? Stock 1 2 3 4 5 Investment £’s 25 10 15 40 35 Beta . .75 .95 1.25 1.5 0 a. 0.73 b. 0.81 c. 0.86 d. 0.94 e. 1.07

Q: b) Calculate the beta of the following portfolio. Stock Amount Security Beta invested A RM6,700 1.58…

A: An individual makes investments in various securities with a motive to generate higher returns and…

Q: What is the beta of a portfolio made up of two risky assets and a risk-free asset? You invest 35% in…

A: Beta: Beta can be defined as the measure of instability of a separate stock relative to the…

Q: 2. Consider stocks A and B with the following characteristics: E(RA)=1.42%; E(Rg)=1.92%;…

A: Risk and return are the two important components of the investment. Return means earn additionally…

Q: What is the Portfolio Beta if, 50.00% of your money is invested in the market portfolio (Toronto…

A: The portfolio beta can be calculated as the weighted beta of individual assets. The market portfolio…

Q: You are a long-term investor, having a portfolio of stocks X, Y and Z. Stocks betas are 1.01, 0.93…

A: The question is related to Portfolio Management. The Portfolio beta is calculated with the help of…

Q: eta A   $

A: Beta of portfolio is weighted average beta. Portfolio beta = Sum of [ Weigh of each security * Beta…

Q: Stock Number of shares Stock Price Beta A 750 33 1.2 В 220 51 0.8 460 19 1.4 Economic condition…

A: the expected return is a return that an investor get for receiving on his investment , it will get…

Q: Assume a portfolio is made up of three stocks: Expected Return Investment Beta Stock A 18% $150,000…

A: First weights of each stock in the investment is calculated as investment in stock divided by total…

Q: You decide to form a portfolio of the following amounts invested in the following stocks. What is…

A: The profit or loss that an investor anticipates on an investment with known historical rates of…

Q: The beta =

A: The beta of a stock is the degree of responsiveness to movements in price with changes in the stock…

Q: Question 18 What is the expected retum of the following portfolio? E(R) 0.11 0.09 0.05 Stock A Beta…

A: A portfolio is made up of more than one financial asset. Here the portfolio has three stocks.…

Q: Stock A: Beta is 1.30, the require return in 12.00% Stock B: Beta 0.80. If the risk free is 4.75%.…

A: To solve the question, first we need to determine the market return and then use it to determine the…

Q: Stock A has a beta of 1.2, and its required rate of return is 11.00%. Stock B's beta is 0.80. If the…

A: Required rate of return on stock B = Risk free rate + beta of stock B * market risk premium

Q: What is the expected return on this portfolio? # of Expected Return Stock Price/Share Shares A 11%…

A: Given information: Expected return on stocks A, B and C are 11%, 6% and 17% Number of shares of A, B…

Q: Use the following table of information: Stock X Stock Y Expected Return 14% 18% Standard Deviation…

A: Expected return is a way of calculating profit or loss anticipated by an investor on his investment…

Q: 5. Stock A has a beta of 0.50 and Stock B has a beta of 1.25. Suppose if is 4% and Rm 1S 10%. a.…

A: Solution:- As per security market line, ie. Formula of Capital Asset Pricing Model (CAPM),  E(R) =…

Q: Stock A has a beta of 1.5, stock B has a beta of 0.75, you invest 30% in A and 70% in B. What is the…

A: Beta of Portfolio = [(Stock A beta)*(weight of stock A)] + [(stock B beta)*(weight of stock B)]

Q: The risk-free rate is 4% and the market risk premium is 5%. What is the required return on a…

A: Formulas: Portfolio beta = (Weight of stock A * Beat of stock A) + (Weight of stock B * Beat of…

Q: 5. Portfolio Beta Portfolio beta can be computed in the same way as portfolio return was computed.…

A: Beta is used in determining the risk premium to be expected from investment made in a asset because…

Q: Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock…

A: Here, probability of each state and their rtun for each stock is given. Also, weight of each stock…

Q: Expected Return on the market HPR Beta Risk-free rate Stock ABC 15.68% 1.2 1% 6.68% What is the…

A: Alpha is the abnormal return which the investors get and is above the equilibrium or expected return…

Q: If you hold a portfolio made up of the following stocks:…

A: Investors take the help of beta to select stocks. Optimistic investors tend to select securities…

Q: Intro The table below shows the expected rates of return for three stocks and their weight in some…

A: Expected Return of Portfolio is calculated by multiplying the Expected return of each stock by their…

Q: Hand written plz otherwise skip Q9. Given the following probability distributions for the stocks of…

A: The expected return of Portfolio is calculated with the help of following formula  Er(p) = Er (x) ×…

Q: Consider the following simplified APT model: Factor…

A: a) Expected return = Risk free Rate + (Beta Market * Market Risk premium factor) + ( Beta Interest…

Q: Consider the following simplified APT model: Factor Expected Risk Premium Market 6.4% Interest…

A: Arbitrage Pricing Theory The concept behind the multi-factor asset pricing model known as arbitrage…

Q: k-free rate of 8%, consider the following data: Required return (%) 12 Stock Beta 0.8 A B 1.2 13 C…

A: Required rate can be calculated from the capital assets pricing model and if required rate is less…

Q: required

A: Required rate of return = Risk free rate + Market risk premium * Beta

Q: equired: 1. Calculate the expected return for the above stocks. Assume risk free rate is 5%.…

A: This post has three questions. Questions 1 and 3 have been answered below.

Q: What is the beta of the following portfolio? Stock FR Beta 13 10 0.5 Investment $60000 $50000…

A: Stock Beta Investment A 1.3 60,000 B 1.0 50,000 C 0.5 70,000   Total Investment =  180,000…

Q: Intro You've assembled the following portfolio: Stock Expected return Portfolio weight 1 9.3% 30% 2…

A: Expected rate of return is calculated by multiplying the assets weight with expected return.…

Q: Stock Number of shares Stock Price Beta A 750 33 1.2…

A: Capital Asset Pricing Model (CAPM) refers to a model that describes the relationship between the…

Q: Use the following information: Stock A B Good state 12% 17% Bad state 0% -1% Assume there is 60%…

A: Given, Stock A and Stock B. Investment in Stock A is 9% and investment is Stock B is 1-9%

Q: Find the Beta for Stock Y given the Expected Return of Stock Y is 18.4% The expected return on the…

A: Expected return = Risk free rate + beta * (market return - risk free rate )

Q: 2. A portfolio consists of two stocks: Stock Expected Return Standard Deviation Weight Stock 1 10%…

A: a. given, stock expected return (r) standard deviation (σ) weight (w) stock 1 10% 15%…

Q: Stock Expected Return A 15% B 10% C 22% D 14%   Use the information in the schedule above…

A: RETURN ON PORTFOLIO = sum of all the expected return on each stock. RETURN ON STOCK = amount *…

Q: 22.Consider the following simplified APT model: Factor Expected Risk Premium Market 6.4% Interest…

A: