CFIN
6th Edition
ISBN: 9780357144039
Author: BESLEY
Publisher: CENGAGE L
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Chapter 8, Problem 6PROB
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The investment in stock 1 is $9,000 and its return is 18%. The investment in other stock is $21,000 and its return is 8%.
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Rebecca invested $9,000 in a stock that has an expected return equal to 18 percent and $21,000 in a stock with an 8 percent expected return. What is the portfolio’s expected return?
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- An individual has $30,000 invested in a stock with a beta of 0.7 and another $30,000 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? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardAn 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).arrow_forwardA 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.arrow_forward
- You have $19,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 13.15 percent. How much money will you invest in Stock X and Stock Y? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Investment in Stock X Investment in Stock Yarrow_forwardInvestor X invested in three stocks equally. Return on his portfolio is 18%. Return of Stock A is 14% Return of Stock B is 15%. What is the return on Stock C?arrow_forwardYou own a portfolio that has $1,800 invested in Stock A and $2,900 invested in Stock B. If the expected returns on these stocks are 9% and 15%, respectively, what is the expected return on the portfolio?arrow_forward
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- You own a portfolio of two stocks, A and B. Stock A is valued at $9,386 and has an expected return of 13.08 percent. Stock B has an expected return of 7.18 percent. What is the expected return (in percent) on the portfolio if the portfolio value is $14,567? Answer to two decimalsarrow_forwardYou own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the expected returns on these stocks are 0.12 and -0.09, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).arrow_forwardYou own a portfolio that has $2,450 invested in Stock A and $3,250 invested in Stock B. If the expected returns on these stocks are 13 percent and 15 percent, respectively, what is the expected return on the portfolio?(Do not round your intermediate calculations.)arrow_forward
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