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In: Finance

Katy owns a portfolio that consists of four stocks as follows: Stock No. of shares Price...

  1. 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
  1. 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?
  2. 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?
  3. What return should Katy require from her portfolio?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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