1. A stock has an expected return of 9 percent,...

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Finance

1.

A stock has an expected return of 9 percent, its beta is 0.5, and the risk-free rate is 3.6 percent. What must the expected return on the market be?

rev: 09_20_2012

10.80%

15.12%

13.68%

14.98%

14.40%

2.

You own the following portfolio of stocks. What is the portfolio weight of stock C?

Stock Number of Shares Price per Share
A 120 $38
B 810 $34
C 450 $58
D 260 $57

35.74 percent

20.30 percent

37.72 percent

64.26 percent

58.02 percent

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