Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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An individual has $50,000 invested in a stock with a beta of 0.7 and another $50,000 invested in a stock with a beta of 1.1. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
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- You own a portfolio that has $5,758 invested in Stock A and $1,616 invested in Stock B. If the expected returns on these stocks are -0.12 and 0.24, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).arrow_forwardSuppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.95. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 0.80. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardData: So 101; X= 114; 1+r= 1.12. The two possibilities for sr are 143 and 85.arrow_forward
- She has $71,000 invested in stock A with a beta of 1.30 and another $56,000 invested in stock B with a beta of .60. If these are the only two investments in her portfolio, what is her portfolio’s beta?arrow_forwardA portfolio is invested 24 percent in Stock G, 39 percent in Stock J, and 37 percent in Stock K. The expected returns on these stocks are 10.5 percent, 13 percent, and 18 percent, respectively. What is the portfolio's expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)arrow_forwardYour own stock portfolio invested 25 percent in Stock Q, 20 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are .85, .91, 1.31 and 1.76 respectively. What is the portfolio beta? Do not round intermediate calculations and round your answer to 2 decimal places.arrow_forward
- 8.2 An individual has $20,000 invested in a stock with a beta of 0.8 and another $55,000 invested in a stock with a beta of 1.8. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardRanking investments by expected returns What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Round the answers to two decimal places. Do not round intermediate calculations. Buy a stock for $45 a share, hold it for 3 years, then sell it for $75 a share (the stock pays annual dividends of $3 a share). % Buy a security for $25, hold it for 2 years, then sell it for $60 (current income on this security is zero). Do not round intermediate calculations. % Buy a 1-year, 12 percent note for $950 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round intermediate calculations. %arrow_forwardYou own a stock portfolio invested 27 percent in Stock Q, 17 percent in Stock R, 43 percent in Stock S, and 13 percent in Stock T. The betas for these four stocks are .96, 1.02, 1.42, and 1.87, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forward
- You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If the expected returns on these stocks are 14 percent and 8 percent, respectively, what is the expected return (in percent) on the portfolio? Answer to two decimals.arrow_forwardYour portfolio is comprised of 30 percent of Stock X, 20 percent of Stock Y, and 50 percent of Stock Z. Stock X has a beta of 1.05, Stock Y has a beta of 0.80, and Stock Z has a beta of 1.43. What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardMansukharrow_forward
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