Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3) You own the portfolio of five stocks shown below: A B C 1 Value Beta 2 3 Human Genome Frozen Food Express $ 10,600 0.92 $ 12,100 1.34 4 Molecular Device $ 7,800 1.24 5 Pandemic Busters $ 10,200 1.27 6 Zoom Technologies $ 15,100 0.59 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places.

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3)
You own the portfolio of five stocks shown below:
A
Human Genome
B
C
Value
Beta
2
$ 10,600
0.92
Frozen Food Express
Molecular Device
$ 12,100
1.34
$ 7,800
1.24
$ 10,200
1.27
6
Zoom Technologies
$ 15,100
0.59
123456
Pandemic Busters
Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected
to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio?
Note: Do not round intermediate calculations and round your answers to 2 decimal places.
Portfolio Beta
Required Return
%
Transcribed Image Text:Problem 10-14 Spreadsheet Problem: Portfolio Beta and Return (LG10-3) You own the portfolio of five stocks shown below: A Human Genome B C Value Beta 2 $ 10,600 0.92 Frozen Food Express Molecular Device $ 12,100 1.34 $ 7,800 1.24 $ 10,200 1.27 6 Zoom Technologies $ 15,100 0.59 123456 Pandemic Busters Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places. Portfolio Beta Required Return %
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