In: Finance
1a) You are invested 38.30% in growth stocks with a beta of 1.93, 20.30% in value stocks with a beta of 0.97, and 41.40% in the market portfolio.
What is the beta of your portfolio?
1b)The market risk premium for next period is 8.00% and the
risk-free rate is 1.90%. Stock Z has a beta of 1.10 and an expected
return of 11.30%. What is the: a) Market's reward-to-risk ratio? |
b) Stock Z's reward-to-risk ratio |