Question 15 You own a portfolio that has $3,026 invested in Stock A and $4,300 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively. Required: What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Question 15 You own a portfolio that has $3,026 invested in Stock A and $4,300 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively. Required: What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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2. 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.
Question 29 Assume the following data for a stock: risk-free rate 5 percent: beta (market) = 1.4; beta (size) - 0.4; beta (book-to- market)-1.1; market risk premium - 13 percent; size risk premium 9.7 percent; and book-to-market risk premium = 11.2 percent. Calculate the expected return on the stock using the Fama-French three-factor model. O 26.5 percent 14.8 percent O 25.1 percent 12.0 percent
Q2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Ch. 11. You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 8 percent, 12 percent, and 17 percent, respectively. What is the expected return on the portfolio? Format as a percent and round to one place past the decimal point as "XX.X"
8. Problem 8.02 (Portfolio Beta) A-2 J Ofice eBook An individual has $45,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 1.9. 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.
Bed You own a portfolio that has $1,700 invested in Stock A and $3,050 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.) Multiple Choice 13.50% 13.07% 14.20% 14.62% 13.93%
i need answer typing clear urjent no chatgpt i will give upvote A portfolio is invested 18 percent in Stock G, 58 percent in Stock J, and 24 percent in Stock K. The expected returns on these stocks are 7 percent, 13 percent, and 17 percent, respectively. What is the portfolio's expected return?
Accounting Use the following information: Stock A B Good state 12% 17% Bad state 0% -1% Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs. What is the expected return of a portfolio that is 9% invested in stock A and 1-9% invested in B? (Please use 5 decimal places, this should be written in percentage return, so an answer of 23.143% should be written at .23143)
You own a portfolio that has $3,00o0 invested in Stock A and $4,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
Beta Amt. Invested Stock A 1.03 $1,561 Stock B 0.98 $3,090 Stock C 1.37 $1,759 The table above contains the Betas and the amount invested in each stock in a given portfolio. Assuming that these are the only three stocks in the portfolio, calculate the beta of the portfolio.
Question 16 a. Based on the following information, calculate the expected return and standard deviation for each of the following stocks. What are the covariance and correlation between the returns of the two stocks? Calculate the portfolio return and portfolio standard deviation if you invest equally in each asset. Returns State of Economy Prob J K Recession 0.25 -0.02 0.034 Normal 0.6 0.138 0.062 Boom 0.15 0.218 0.092 b. A portfolio that combines the risk-free asset and the market portfolio has an expected return of 7 percent and a standard deviation of 10 percent. The risk-free rate is 4 percent, and the Page 7 of 33 expected return on the market portfolio is 12 percent. Assume the capital asset pricing model holds. What expected rate of return would a security earn if it had a .45 correlation with the market portfolio and a standard deviation of 55 percent? c. Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9 percent. The market…
Question 3 a) You intend to construct a 2-asset portfolio. Three stock candidates are available with the following probability distribution of their returns: Return on Return on Return on Probability Stock X Stock Y Stock Z (%) (%) (%) 0.35 0.4 5 10 9 12 0.25 4 14 i) ii) How many 2-asset portfolio combinations can be created? Provide their names. Compute the covariance between the returns of various stock combinations Provide an estimate of correlation between returns of various stock combinations Which stocks emerges as the most ideal candidates to be held as a portfolio? Why? iv) b) “There is no alpha in an efficient markeť". In light of this statement, briefly describe market efficiency and its forms and why an investor may not be able to locate stocks that provide a positive alpha (undervalued stocks) consistently. (150 – 200 words)

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