You have a portfolio with a beta of 1.35. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.78? (Round your answer to 2 decimal places.) NEW PORTFOLIO BETA.
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Q11
You have a portfolio with a beta of 1.35. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.78? (Round your answer to 2 decimal places.)
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- What must be the beta of a portfolio with E(rp) Round your answer to 2 decimal places.) Beta of a portfolio 14.5%, if rf = 4% and E(TM) = 10% ? (CYou have a portfolio worth $75,000 consisting of 15 stocks with $5,000 invested in each. The portfolio's beta is 1.20. You plan to sell a stock with a beta of 0.8 and use the proceeds to buy a new stock with a beta of 1.6. What will the beta of the new portfolio? a. 1.25 Ob.2.0 c. 1.58 d. 1.422. Problem 8.02 (Portfolio Beta) еВook An individual has $45,000 invested in a stock with a beta of 0.5 and another $30,000 invested in a stock with a beta of 2.2. If these are the only investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
- 7. Problem 8.03 (Required Rate of Return) eBook Assume that the risk-free rate is 7.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. %You have a portfolio with a beta of 1.38. What will be the new portfolio beta if you keep 89 percent of your money in the old portfolio and 11 percent in a stock with a beta of 0.59? (Round your answer to 2 decimal places.)Give typing answer with explanation and conclusion Assume that the risk-free rate is 2.5% and the market risk premium is 5%. What is the required rate of return on a stock with a beta of 1.9? Round your answer to one decimal place.
- You own a portfolio that has a total value of $150,000 and a beta of 1.32. You have another $61,000 to invest and you would like the beta of your portfolio to decrease to 1.25. What does the beta of the new investment have to be in order to accomplish this? Multiple Choice 1.078 1.138 1.199 1.285 .943Q4 Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent, what is Hastings' required return? (Round your answer to 2 decimal places.) HASTING'S REQUIRED RETURN. %You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Amount Beta Expected Return $9,370 0.69 10.50% Microsoft $5,598 1.6 16.90% $4,261 1.1 15.75% $4,668 2.39 11.80% Stock Apple Ford Time Warner
- You have a portfolio with a beta of 1.30. What will be the new portfolio beta if you keep 84 percent of your money in the old portfolio and 16 percent in a stock with a beta of 1.07? (Do not round intermediate calculation and round your answer to 2 decimal places.) New portfolio betaYou want your portfolio beta to be 1.16. Currently, your portfolio consists of $3,000 invested in stock A with a beta of 1.64 and $2,000 in stock B with a beta of 0.75. You have another $5,000 to invest and want to divide it between an asset with a beta of 1.48 and a risk-free asset. How much should you invest in the risk-free asset? Multiple Choice O O O O 1575 1500 225 1230 510Assume that the risk-free rate is 6.5% and the required return on the market is 10%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places. %