Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose you have a portfolio that includes two sto

Suppose you have a portfolio that includes two stocks. You invested 60 percent of your total...

80.2K

Verified Solution

Question

Finance

Suppose you have a portfolio thatincludes two stocks. You invested 60 percent of your total fund ina stock that has a Beta equal to 3.0 and the remaining 40 of yourfunds in a stock that has a Beta equal to 0.5. What is thePortfolio Beta?

  1. a)           Stock F has a Beta Coefficient equal to 2. If the Risk-Free Rate ofReturn equals 4 per-

cent and the Expected Market Returnequals 10 percent, what is stock F’s Required Rate of Return?

  1.            A portfolio’s Expected Return is 12%, its Standard Deviation is20%, and the Risk-Free Rate is 4%. Which of the following wouldmake the greatest increase in the Portfolio’s Sharpe

               Ratio?

  1. An increase of 1% in Expected Return.
  2. A decrease of 1% in Risk-Free Rate
  3. A decrease of 1% in its Standard Deviation

Answer & Explanation Solved by verified expert
3.6 Ratings (576 Votes)
1 Calculation of portfolio beta particulars beta weights weighted beta stock 1 30 060 18 stock 2 05 040 02 TOTAL 20 The portfolio beta equals 20 2 Calculation of required return of stock F formula Required rate of return risk    See Answer
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

2. An automatic welding machine is being considered for use in a production process. It will...

Basic Math
Q

Biological Anthropology question: What are the three major changes in human evolution? Be specific

Medical Sciences
Q

What types of reentry problems are often encountered by persons returning to the home culture? How...

Psychology
Q

In a certain mutant strain of bacteria the enzyme Leucyl tRNA Synthetase mistakenly attaches cysteine...

Biology
Q

9 One card is randomly drawn from a deck of 52 card What is the...

Geometry
Q

Graph the function.9) y = -6 csc(x + ?/2)+1Step:1 Find the periodStep:2 Find the intervalStep:3...

Geometry
Q

A study concludes that 15 percent of all college students attend a gym class.Which of...

Basic Math
Q

3 Suppose you take out a 351 980 mortgage at 12 3 interest compounded annually...

Calculus
Q

Holiday, Inc.s inventory of $887,000 at December 31, 2017, was based on a physical count...

Accounting
Q

Alden Co.s monthly unit sales and total cost data for its operating activities of the...

Accounting
Q

Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during...

Accounting
Q

Determine which is the best approach for each problem - supervised learning or unsupervised clustering...

Finance