After coming to a final decision, World Wide Widget Manufacturing, Inc., has a stock portfolio that...

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Finance

After coming to a final decision, World Wide WidgetManufacturing, Inc., has a stock portfolio that consists of thefollowing positions. With betas shown for each stock. You have beenasked to calculate and evaluate the risk of your portfolio beta andthe required returns for your portfolio. The market return isexpected to be 11 percent, and the risk free rate is 6 percent.What is the beta of the portfolio? Is this high- or low- riskportfolio? What’s the required return of the portfolio? Fill in theposition, weight and portfolio beta columns for each company in thetable below. Show calculation.
Shares Price Position Weight Beta W x Beta
Merck & Co. 150 61 1.62
Domino's 200 152 1.8
Macy's 300 36 1.42
Tesla 150 202 2.51
Totals 1
A.      Merck & co.,Inc.                                             C. Macy’s Inc.
1.      Position:                                                                             1. Position:
2.      Weight:                                                                                 2.Weight
3.       W xbeta                                                                             3. W x Beta
B.      Domino’sPizza                                                 D. Tesla
1.      Postion:                                                                      1. Position
2.      Weight                                                                        2. Weight
3.       W XBeta                                                                     3. W X Beta
Total position:
Total W x Beta:
Expected return:
The risk of the portfolio:
Please show all calculations and double check the formuladetails.

	Shares	Price	Weight	Beta
Merck & Co.	150	61		1.62
Domino's	200	152		1.8
Macy's	300	36		1.42
Tesla	150	202		2.51
Totals			1

Answer & Explanation Solved by verified expert

4.3 Ratings (875 Votes)

Shares Price Market Value shares x Price Position Weight Beta W x Beta Merck Co 150 61 9150 4 01135 162 0184 Dominos 200 152 30400 1 03769 180 0678 Macys 300 36 10800 3 01339 142 0190 Tesla 150 202 30300 2 03757 251 0943 Totals See Answer

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After coming to a final decision, World Wide WidgetManufacturing, Inc., has a stock portfolio that consists of thefollowing positions. With betas shown for each stock. You have beenasked to calculate and evaluate the risk of your portfolio beta andthe required returns for your portfolio. The market return isexpected to be 11 percent, and the risk free rate is 6 percent.What is the beta of the portfolio? Is this high- or low- riskportfolio? What’s the required return of the portfolio? Fill in theposition, weight and portfolio beta columns for each company in thetable below. Show calculation.SharesPricePositionWeightBetaW x BetaMerck & Co.150611.62Domino's2001521.8Macy's300361.42Tesla1502022.51Totals1A. Merck & co.,Inc. C. Macy’s Inc.1. Position: 1. Position:2. Weight: 2.Weight3. W xbeta 3. W x BetaB. Domino’sPizza D. Tesla1. Postion: 1. Position2. Weight 2. Weight3. W XBeta 3. W X BetaTotal position:Total W x Beta:Expected return:The risk of the portfolio:Please show all calculations and double check the formuladetails.