You still have $14,000 invested in TGT and $8,000 invested in JCP. If the beta of TGT is 0.65 and the portfolio beta is 1, what is the beta of JCP?
Q: Suppose you have $2,000 to invest. The market portfolio has an expected return of 10.5 percent and a…
A: Let the weight in Risk free Asset be A Therefore, weight in market portfolio be 1-A
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A: Given: Portfolio Value $ 1,00,000.00 Market value of HCL $ 40,000.00…
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A: As per CAPM model, Required rate of return = Rf + Beta (Rm- Rf) Rm= Market rate of return Rf= Risk…
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A: Expected return is the return expected by the investor on the investment. It is the profit or loss…
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A: Portfolio beta is weighted average beta of individual stocks
Q: 8
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A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…
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A: according to capital asset pricing model: expected return = risk free rate+beta ×market risk premium
Q: You are going to invest P20,000 in a portfolio consistin g of assets X, Y, and Z, as follows:…
A: The beta of the portfolio is calculated as sum of weight of each stock and the respective betas
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A: Beta is a financial metric which is used to measure the volatility of a stock. Beta measures the…
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A: An expected return is defined as the profit or loss, which an investor used to anticipate on…
Q: Beta of a project. Magellan is adding a project to the company portfolio and has the following…
A: Expected return (Er) = 13.3% Market return (Rm) = 10.6% Risk free rate (Rf) = 2.4% Project beta = B
Q: If you invest 40% of your investment in GE with an expected rate of return of 10% and the remainder…
A: A combination of the different types of funds and securities for the investment is term as the…
Q: If you invest $45,000 in the market index and $30,000 in a risk free investment what is the beta…
A: Market index funds always has a beta of 1. Risk free investment always has a beta of 0.
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A: Financial statements are statements which states the business activities performed by the company .…
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A: The expected return of portfolio can be calculated with the help of CAPM equation. The beta in the…
Q: The treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to…
A: a) Risk free Rate = 6% Market Return = 10%
Q: Suppose you have a portfolio of Vestel and Turkcell with a beta of 1.8 and 0.9, respectively. If you…
A: The Answer states the computation of Portfolio Beta by taking the weighted average of individual…
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A: Given, Portfolio Beta = 1.60 Intend to reduce beta to 1.20 Current portfolio worth = RM 2.8 million…
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A: In the given question we need to find out the beta of the portfolio. Portfolio beta is the weighted…
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A: Expected return is calculated by weighted average mean of return of stocks.Combined Standard…
Q: A portfolio returned 13% last year, with a beta equal to 1.5. The market return was 10%, and the…
A: Portfolio return = 13% Beta = 1.50 Market return = 10% Risk free rate = 4%
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A: In this question we need to compute the Beta of the portfolio. Beta of the portfolio is the weighted…
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A: Given information: Beta value is 2.01 Market return is expected to be 12.50% Risk-free rate is 5.00%
Q: What must be the beta of a portfolio with E(rP) = 20%, if rf = 5% and E(rM) = 15%?
A: In the given question we need to compute the Beta of the portfolio.
Q: tock has a beta of 1.2 and an expected return of 16%. The risk-free asset currently earns 5%. a)…
A: In this we have to use capital assets pricing model.
Q: A company has a beta of 3.25. If the market return is expected to be 14 percent and the risk-free…
A: Given Data: Market return = 14% Risk-free rate = 5.5% Beta = 3.25
Q: You want to invest $46,000 in a portfolio with a beta of no more than 1.34 and an expected return of…
A: Expected return of portfolio = W1*R1+W2*R2 Potfolio Beta = W1*ß1+W2*ß2
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Q: An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock…
A: Weight of Stock A = 40% Weight of Stock B = 60% Beta of Stock A = 1.2 Beta of Stock B = 1.6 Risk…
Q: You are going to invest $50,000 in a portfolio consisting of assets X, Y, and Z, as follows; What…
A: Expected return of the portfolio can be calculated by averaging the returns of assets in proportion…
Q: the capital asset pricing model.
A: The Capital Asset Pricing Model (CAPM) is a very popular model used in finance to describe the…
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A: (a) Risk premium on the market = Expected market return - risk free return = 14%…
Q: You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: A project under consideration has an internal rate of return of 14% and a beta of 0.6. The risk-free…
A: Financial statements are statements which states the business activities performed by the company .…
Q: . Capital Asset Pricing Model A. Suppose you invest $400,000 in Treasury Bills that have a yield to…
A:
Q: Beta of a project. Vespucci is adding a project to the company portfolio and has the following…
A: ACCORDING TO CAPM MODEL: KE=RF+BETA×RM-RF REARRANGING FOR BETA: BETA=KE-RFRM - RF
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A: Given information: Risk free return is 3% Expected market rate of return is 9%
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- An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?EJH has a beta of 1.4, CSH has a beta of 0.4, and KMS has a beta of 1. If you put 26% of your money in EJH, 25% in CSH, and 49% in KMS, what is the beta of your portfolio? The beta of your portfolio is __ ? (Round to two decimal places.)An investment banker has recommended a $100,000 portfolio containing assets B, D, and F. $20,000 will be investedin asset B, with a beta of 1.5; $50,000 will be invested in asset D, with a beta of 1.7; and $30,000 will be invested inasset F, with a beta of 0.6. The beta of the portfolio is 1.25 1.45 1.33 unable to be determined from the information provided
- You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Asset Annual Return Probability Beta Proportion X 10% 0.50 1.2 0.333 Y 8% 0.25 1.6 0.333 Z 16% 0.25 2.0 0.333 Given the information in Table 5.2, The beta of the portfolio in Table 8.2, containing assets X, Y, and Z is ________. Select one: a. 1.6 b. 2.0 c. 1.5 d. 2.4You have a portfolio consisting of Intel, GE, and Con Edison. You put 20% in Intel, 65% in GE and 15% in Con Edison. Intel, GE and Con Edison have betas of 1.25, 0.79, and 1.81 respectively. What is your portfolio beta?An investor has a portfolio of $100,000, the market value of HCL is $40,000 with a Beta value of HCL is 1.20, and market value of Facebook is $60,000 with Beta value is 1.50. The beta of the portfolio will be:-
- What is the required return on an investment with a beta of 1.3 if the riskfreerate is 2.0 percent and the return on the market is 8.1 percent? If the expected return on the investment is 11.2 percent, what should you do?The risk free rate is 8 % and the expected return on the market portfolio is 16 %. A firm is considering a project with an estimated beta of 1.3. What is the required rate of return on the project? If the IRR is of the project is 19 %, what is the project alpha?Suppose you have a portfolio that has $290 in stock A with a beta of 1.04, $1, 160 in stock B with a beta of1.34, and $870 in the risk-free asset. You have another $580 to invest. You wish to achieve a beta for yourwhole portfolio to be the same as the market beta. What is the beta of the added security?
- Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 6%. a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0?Your client decides to invest $60 million in Flama and $40 million in Blanca stocks. The risk-free rate is 2% and the market risk premium is 4%. The beta of the Flama Stock is 2, and the beta of the Blanca stock is 4. What are the weights for this portfolio? What is the portfolio beta? What is the required return of the portfolio?Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0? How does expected return vary with beta?