Question
In: Finance
Portfolio Risk and Return Given the following portfolio Stock Amount (MV) Beta Return CAPM A $10,000...
| Portfolio Risk and Return | ||||||
| Given the following portfolio | ||||||
| Stock | Amount (MV) | Beta | Return | CAPM | ||
| A | $10,000 | 1.1 | 13.50% | |||
| B | $5,000 | 1.4 | 14.00% | |||
| C | $6,000 | 1.5 | 7.50% | |||
| D | $13,000 | 0.7 | 8.50% | |||
| E | $16,000 | 1.9 | 19.80% | |||
| Total | $50,000 |
|
||||
| Risk free rate | 3.00% | |||||
| market return | 12.00% | |||||
| Portfolio return | ||||||
| Portfolio beta | ||||||
| Portfolio CAPM | ||||||
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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A.
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2.14%
2.13%
2.16%
2.15%
B.
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Based on the above data, what is the expected return for Apple?
(Express your answer in percentage, rounded to 2 decimal
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The expected return for Apple (in
%):
Show the formula...
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Accordingto the CAPM, a stock is twice as risky as the market portfolio Theexpected return of the market portfolio is 12 and the risk free rate is 6 Thestock’s price is currently 10 An analyst predicts that the price will be 11 in oneyear According to the analyst, where does this stock plot relative to the SML? Ifthe analyst’s forecast is correct, then by what percentage would the stock’s pricehave to change today in order for it to plot on...
If the rate of return on risk-free asset is 5% and you expect market return to be 14%, what the is the beta of this portfolio under the assumption that CAPM holds?
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14%, what the is the beta of this portfolio under the assumption
that CAPM holds?
Using CAPM, a stock has a beta of 1.13 and expected return of 12.1%. Risk-free asset currently earns 3.6%.
Using CAPM, a stock has a beta of 1.13 and expected return of 12.1%. Risk-free asset currently earns 3.6%.
(a) what is the expected return on a portfolio that is equally invested in the two assets?
(b) A portfolio of two assets has a beta of 0.50, what are portfolio weights?
(c) If a portfolio of two assets has an expected return of 10%, what is beta?
(d) If a portfolio of two assets has a beta of 2.26, what...
Using CAPM, a stock has a beta of 1.13 and expected return of 12.1%. Risk-free asset currently earns 3.6%.
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( (a) what is the expected return on a portfolio that is equally invested in the two assets?
( (b) A portfolio of two assets has a beta of 0.50, what are portfolio weights?
(c) If a portfolio of two assets has an expected return of 10%, what is beta?
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A money manager is holding the following portfolio: Stock Amount Invested Beta &nbs
A money manager is holding the
following portfolio:
Stock Amount
Invested Beta
1
$400,000
1.00
2
600,000
0.85
3
300,000
1.20
4
500,000
0.50
5
200,000
1.70
The
risk-free rate is 7 percent and the portfolio’s required rate of
return is 13.975 percent. The manager would like to sell all of her
holdings of Stock 4 and use half the proceeds to purchase more
shares of Stock 5, and the other half of...
Assume the CAPM holds. Portfolio A has a beta of 1.2. Portfolio B has a beta...
Assume the CAPM holds. Portfolio A has a beta of 1.2. Portfolio
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portfolio B. 10 points
Using CAPM A stock has a beta of 1.15 and an expected return of 11.4 percent....
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A stock has a beta of 1.15 and an expected return of
11.4
percent. A risk-free asset currently earns 3.5
percent.
a. What is the expected return on a portfolio that is
equally invested in the
two assets?
b. If a portfolio of the two assets has a beta of .7,
what are the portfolio weights?
c. If a portfolio of the two assets has an expected
return of 9 percent, what
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d. If a...
. Using the information below, find the expected return and beta of the portfolio. Stock Beta...
. Using the information below, find the
expected return and beta of the portfolio.
Stock
Beta
Return
Investment
Stock A
0.78
7.55%
$ 9,500
Stock B
1.10
9.87%
$20,000
Stock C
2.45
15.66%
$ 5,000
Stock D
1.00
10.22%
$15,500
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