Question
In: Finance
Use a risk-free rate of 3% and a market return of 7%. You have a portfolio...
Use a risk-free rate of 3% and a market return of 7%. You have a portfolio with $10,000 invested in Stock A with a beta of 0.9, $20,000 in Stock B with a beta of 1.8, and $20,000 in Stock C with a beta of 2.0. What is the beta and required return of the portfolio?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Use a risk-free rate of 3% and a market return of 7%. If your $500,000 portfolio...
Use a risk-free rate of 3% and a market return of 7%. If your
$500,000 portfolio has a beta of 1.1, should you add $50,000 of a
stock with a beta of 1.8 and an expected return of 11.0%?
. Depends on the market conditions
B. Yes
C. No
D. Not enough information to answer
The risk-free rate of return is 6%, the expected rate of return on the market portfolio...
The risk-free rate of return is 6%, the expected rate of return
on the market portfolio is 15%, and the stock of Xyrong Corporation
has a beta coefficient of 2.3. Xyrong pays out 45% of its earnings
in dividends, and the latest earnings announced were $9.00 per
share. Dividends were just paid and are expected to be paid
annually. You expect that Xyrong will earn an ROE of 18% per year
on all reinvested earnings forever.
a. What is the...
The risk-free rate of return is 10.0%, the expected rate of return on the market portfolio...
The risk-free rate of return is 10.0%, the expected rate of
return on the market portfolio is 17%, and the stock of Xyrong
Corporation has a beta coefficient of 1.6. Xyrong pays out 30% of
its earnings in dividends, and the latest earnings announced were
$15 per share. Dividends were just paid and are expected to be paid
annually. You expect that Xyrong will earn an ROE of 20% per year
on all reinvested earnings forever.
a. What is the...
The risk-free rate of return is 6%, the expected rate of return on the market portfolio...
The risk-free rate of return is 6%, the expected rate of return
on the market portfolio is 14%, and the stock of Xyrong Corporation
has a beta coefficient of 1.3. Xyrong pays out 50% of its earnings
in dividends, and the latest earnings announced were $8.00 per
share. Dividends were just paid and are expected to be paid
annually. You expect that Xyrong will earn an ROE of 15% per year
on all reinvested earnings forever.
a. What is the...
The risk-free rate of return is 9.0%, the expected rate of return on the market portfolio...
The risk-free rate of return is 9.0%, the expected rate of
return on the market portfolio is 14%, and the stock of Xyrong
Corporation has a beta coefficient of 2.0. Xyrong pays out 50% of
its earnings in dividends, and the latest earnings announced were
$20 per share. Dividends were just paid and are expected to be paid
annually. You expect that Xyrong will earn an ROE of 18% per year
on all reinvested earnings forever.
a. What is the...
The risk-free rate of return is 9.0%, the expected rate of return on the market portfolio...
The risk-free rate of return is 9.0%, the expected rate of
return on the market portfolio is 14%, and the stock of Xyrong
Corporation has a beta coefficient of 2.0 resulting in a required
rate of return of 19.00%. Xyrong pays out 50% of its earnings in
dividends, and the latest earnings announced were $20 per share.
Dividends were just paid and are expected to be paid annually. You
expect that Xyrong will earn an ROE of 18% per year...
If the risk free rate of return is 7%, the required return on the market is...
If the risk free rate of return is 7%, the required return on
the market is 10%, and the required rate of return on Stock J is
13%, what is Stock J’s beta coefficient?
a. 1.0
b. 1.5
c. 2.0
d. 2.5
e. 3.0
The risk free rate of return is 3%, the expected return on themarket portfolio is...
The risk free rate of return is 3%, the expected return on the
market portfolio is 11% and the stock of Xyr Corp has a beta
coefficient of 1.2. Kyr pays out 35% of its earnings in dividends
and the latest earnings announced were $7.50/share. Dividends were
just paid and are expected to be paid annually. You expect that Xyr
will earn an RoE of 19% per year on all reinvested earnings
forever.a. What is the intrinsic value of a...
Given that the risk-free rate is 5% and the expected return on the market portfolio is...
Given that the risk-free rate is 5% and the expected return on the
market portfolio is 10%, if bush company's beta is 2, what is Dow's
expected return?
A. 18%
B. 21%
C. 10%
D. 15%
What is the best measure of risk for an asset that is to be
held in isolation (one stock portfolio)?
A. market risk
B. Beta
C. Diversifiable risk
D. Standard deviation
Which is the best measure of risk for choosing an asset which
is...
The risk-free rate is 8%, the expected return on the market portfolio is 15%, and the...
The risk-free rate is 8%, the expected return on the market
portfolio is 15%, and the stock of Hudson Corp. has a beta of 1.2.
Hudson pays 40% of its earnings as dividends. The earnings next
year are expected to be $12 per share. You expect Hudson to earn an
ROE of 20%.
A. What is the value of Hudson Corp. stock?
B. What is the present value of growth opportunities?
C. What is the P/E ratio of Hudson Corp.?
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