Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. stock a has a beta of 0.55 and volatility of 0.77

Stock A has a beta of 0.55 and volatility of 0.77 . Stock B has...

70.2K

Verified Solution

Question

Finance

image
Stock A has a beta of 0.55 and volatility of 0.77 . Stock B has a beta of 1.49 and volatility of 0.64 . You form a portfolio with $12,000 in Stock A and $13,000 in Stock B. What is your portfolio's expected return if the market risk premium is 8.9% and the T-Bill yield is 2.8% ? Enter your answer as a decimal showing four decimal places. For example, if your answer is 8.25\%, enter .0825 . Stock A has a beta of 0.55 and volatility of 0.77 . Stock B has a beta of 1.49 and volatility of 0.64 . You form a portfolio with $12,000 in Stock A and $13,000 in Stock B. What is your portfolio's expected return if the market risk premium is 8.9% and the T-Bill yield is 2.8% ? Enter your answer as a decimal showing four decimal places. For example, if your answer is 8.25\%, enter .0825

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Project L costs $75,000, its expected cash inflows are $9,000 per year for 8 years, and...

Finance
Q

A company is considering the purchase of a $200,000 computer-based inventory management system. It will be...

Finance
Q

Here are summary statistics for randomly selected weights of newborn girls: n = 192, X=26.5 hg,...

Basic Math
Q

A star with apparent visual magnitude mV = 3.5, absolute magnitude MB = 2.0 has parallax...

Physics
Q

In a random sample of? males, it was found that 26 write with their left hands...

Statistics
Q

George's family is on a road trip. After driving for a while, they stopped for...

Basic Math
Q

Suppose that f x ln 5x 10 Find f x and use interval notation to...

Calculus
Q

The condition that exists when managers deliberately underestimate revenues or overestimate costs to provide flexibility...

Accounting
Q

Consider how Clare Valley, a popular ski resort, could use capital budgeting to decide whether...

Accounting
Q

b) Cultus Corp. decided to expand further by purchasing the net assets of Silk Corp....

Accounting
Q

Quality Motor Company is an auto repair shop that uses standards to control its labor...

Accounting
Q

As a financial analyst at Bank of America Merrill Lynch, you want to find out...

Finance