Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock has a beta of 1.20 and an expected return

A stock has a beta of 1.20 and an expected return of 14 percent. A...

90.2K

Verified Solution

Question

Finance

image
A stock has a beta of 1.20 and an expected return of 14 percent. A risk-free asset currently eams 3 percent a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Expected return % b. If a portfolio of the two assets has a beta of 72, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 4 decimal places, 0.9., 32,1616.) Weight of stock Risk-free weight c. If a portfolio of the two assets has an expected return of 10 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g. 32.161.) Beta d. If a portfolio of the two assets has a beta of 2.40, what are the portfolio weights ? (Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a whole number.) Weight of stock Risk free weight

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

Advance Math
1.2K views

what is the distinction between the terms sample and population. explain why sampling is necessary in...

General Management
1.2K views

Discuss critically the relevance and application to organisational effectiveness of: (i) Total quality management (TQM); and (ii) Business...

Physics
1.2K views

Four particles of masses 1kg 2kg 3kg and 4kg are at the vertices of a...

Calculus
1.2K views

ck here to watch the video Ive the system of equations by th 2x 3y...

Calculus
1.2K views

Calculate the directional derivative of f z y sin y in the direction of v...

Algebra
1.2K views

y 2 tan x n 3 Period Phase shift Asymptote 1 x Asymptote 2 x...

Algebra
1.2K views

Learning Goal from Lesson 12 5 I can compute the annual dividend and annual yield...

Accounting
1.2K views

Silver Company makes a product with peak sales in May of each year. Its...

Accounting
1.2K views

Security guard public goods because the cost is being shared by all the owners for...

Accounting
1.2K views

John Adams Companys record of transactions for the month of April was as Tollows: Purchases...

Finance
1.2K views

16. The IRR (Internal Rate of Return) is best described as a. Management's required rate...

Finance
1.2K views

9) Tennessee River Shipyards is considering the replacement of an 8 year old riveting machine...