Question
In: Finance
Katy owns a portfolio that consists of four stocks as follows: Stock No. of shares Price...
- Katy owns a portfolio that consists of four stocks as follows:
|
Stock |
No. of shares |
Price per share |
Beta |
|
A |
150 |
$15.00 |
0.50 |
|
B |
200 |
$25.00 |
1.20 |
|
C |
300 |
$19.00 |
1.45 |
|
D |
100 |
$35.00 |
2.00 |
- If the S&P 500 return is expected to be 7.5%, and the T-bills yield 2%, what return should Katy require from stock A?
- If the S&P 500 return is expected to be 7.5%, and the T-bills yield 2%, what return should Katy require from stock C?
- What return should Katy require from her portfolio?
Solutions
Expert Solution
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jeff jeffy answered 1 year agoRelated Solutions
Elle holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as...
Elle holds a $5,000 portfolio that consists of four stocks. Her
investment in each stock, as well as each stock’s beta, is listed
in the following table:
Stock
Investment
Beta
Standard Deviation
Omni Consumer
Products Co. (OCP)
$1,750
0.90
18.00%
Zaxatti Enterprises
(ZE)
$1,000
1.50
11.00%
Western Gas &
Electric Co. (WGC)
$750
1.10
18.00%
Mainway Toys Co.
(MTC)
$1,500
0.60
22.50%
Suppose all stocks in Elle’s portfolio were equally weighted.
Which of these stocks would contribute the least
market...
Cheyenne holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as...
Cheyenne holds a $10,000 portfolio that consists of four stocks.
Her investment in each stock, as well as each stock’s beta, is
listed in the following table:
Stock
Investment
Beta
Standard Deviation
Omni Consumer Products Co. (OCP)
$3,500
0.80
15.00%
Kulatsu Motors Co. (KMC)
$2,000
1.90
11.00%
Western Gas & Electric Co. (WGC)
$1,500
1.10
16.00%
Mainway Toys Co. (MTC)
$3,000
0.50
28.50%
Suppose all stocks in Cheyenne’s portfolio were equally
weighted. Which of these stocks would contribute the least...
Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as...
Ariel holds a $5,000 portfolio that consists of four stocks. Her
investment in each stock, as well as each stock’s beta, is listed
in the following table:
Stock
Investment
Beta
Standard Deviation
Andalusian Limited (AL)
$1,750
0.90
18.00%
Tobotics Inc. (TI)
$1,000
1.30
11.00%
Water and Power Co. (WPC)
$750
1.10
18.00%
Flitcom Corp. (FC)
$1,500
0.60
19.50%
Suppose all stocks in Ariel’s portfolio were equally weighted.
Which of these stocks would contribute the least market risk to the
portfolio?...
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200,000 $...
The composition of the Fingroup Fund portfolio is as
follows:
Stock
Shares
Price
A
200,000
$
34
B
268,000
56
C
416,000
36
D
520,000
45
The fund has not borrowed any funds, but its accrued management
fee with the portfolio manager currently totals $56,000. There are
4.5 million shares outstanding.
What is the net asset value of the fund? (Round your
answer to 2 decimal places.)
The composition of the Fund XY portfolio is as follows: Stock Shares Price A 260,000 $...
The composition of the Fund XY portfolio is as
follows:
Stock
Shares
Price
A
260,000
$
40
B
360,000
45
C
460,000
20
D
660,000
25
The fund has not borrowed any funds, but its accrued management fee
with the portfolio manager currently totals $45,000. There are 4
million shares outstanding. What is the net asset value of the
fund?
The composition of the Fund WV portfolio is as follows: Stock Shares Price A 310,000 $...
The composition of the Fund WV portfolio is as follows:
Stock Shares Price
A 310,000 $ 35
B 410,000 40
C 510,000 15
D 710,000 20
If during the year the portfolio manager sells all of the
holdings of stock D and replaces it with 200,000 shares of stock E
at $40 per share and 200,000 shares of stock F at $31 per share,
what is the portfolio turnover rate?
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200,000 $...
The composition of the Fingroup Fund portfolio is as
follows:
Stock
Shares
Price
A
200,000
$
41
B
282,000
35
C
409,000
29
D
590,000
40
The fund has not borrowed any funds, but its accrued management fee
with the portfolio manager currently totals $55,000. There are 3.3
million shares outstanding.
What is the net asset value of the fund? (Round your answer
to 2 decimal places.)
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 250,000 $...
The composition of the Fingroup Fund portfolio is as
follows:
Stock
Shares
Price
A
250,000
$
35
B
350,000
40
C
450,000
15
D
650,000
20
If during the year the portfolio manager sells all of the holdings
of stock D and replaces it with 260,000 shares of stock E at $40
per share and 260,000 shares of stock F at $10 per share, what is
the portfolio turnover rate? (Round your answer to 2
decimal places.)
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 310,000 $...
The composition of the Fingroup Fund portfolio is as
follows:
Stock
Shares
Price
A
310,000
$
35
B
410,000
40
C
510,000
15
D
710,000
20
The fund has not borrowed any funds, but its accrued management fee
with the portfolio manager currently totals $35,000. There are 5
million shares outstanding. What is the net asset value of the
fund? (Round your answer to 2 decimal places.)
Your portfolio consists of 1,000 shares of stock A and 1,000 shares of stock B. At...
Your portfolio consists of 1,000 shares of stock A and 1,000
shares of stock B. At today's market open their respective prices
per share are $7.50 and $21. What are their respective weights in
the portfolio at today's market open prices? (rounded to two
decimals).
They have equal weights
0.40 and 0.60
0.35 and 0.65
0.26 and 0.74.
1 points
QUESTION 32
What is your portfolio's beta if stock A's beta is 1.8 and that
of B is 0.4....
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