Problem 8-09 Stock A has a risk premium of 7.1 percent. If Treasury bills yield...

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Accounting

Problem 8-09

Stock A has a risk premium of 7.1 percent. If Treasury bills yield 2.3 percent and the expected return on the market is 7.9 percent, what is the stocks beta coefficient? Round your answer to two decimal places.

Problem 8-03

A portfolio consists of assets with the following expected returns:

Technology stocks 25 %
Pharmaceutical stocks 15
Utility stocks 9
Savings account 5
  1. What is the expected return on the portfolio if the investor spends an equal amount on each asset? Round your answer to two decimal places.

    %

  2. What is the expected return on the portfolio if the investor puts 53 percent of available funds in technology stocks, 13 percent in pharmaceutical stocks, 17 percent in utility stocks, and 17 percent in the savings account? Round your answer to two decimal places.

    %

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