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You own a portfolio that is equally invested in a risk-free asset and two stocks....

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Finance

You own a portfolio that is equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 0.8, and the total portfolio is half as risky as the market, what must be the beta of the other stock in your portfolio.

0.7

0.8

1.5

5.2

A stock has a beta of 3.0 and an expected return of 10%. The risk-free asset currently earns 4%. If a portfolio of the two assets has an expected return of 8%, what is the beta?

1

2

3

4

Find the portfolio standard deviation of the following equity weighted portfolio of two stocks X and Y:

State

Probability

Stock X

Stock Y

Boom

0.5

0.05

0.10

Bust

?

-0.05

0.00

0.25%

2.50%

3.00%

0.05%

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