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?

Q: Ross Law is presented with a client's problem. They have a portfolio of P10,000 investment in each…

A: Portfolio beta = (1st stock weight * beta of 1st stock) + (2nd stock weight * beta of 2nd…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: In finance, portfolio beta serves as a metric for assessing how volatile or exposed to systematic…

Q: An investor has $70,000 invested in a stock that has an estimated beta and another $30,000 invested…

A: According to Capital asset pricing model ,k = Rf+ [ β * (Rm-Rf) ] wherek = Required returnRf= Risk…

Q: Michael holds a portfolio that has an expected return of 11.0%, a total value of $90,000, and a beta…

A: To determine the portfolio beta we need to multiply the percentage of the portfolio of each…

Q: An individual has $25,000 invested in a stock with a beta of 0.6 and another $55,000 invested in a…

A: Portfolio Beta is the weighted average beta of individual stock

Q: has a total 1₂

A: So it can be mentioned as Bp = Wa*Ba + Wb*Bb  Where Bp is the portfolio Beta, and Wa is the weight…

Q: You have $248,641 to invest in a stock portfolio (this amount is your original wealth). Your choices…

A: The total amount available is $248,641.The amount invested in stock L is $42,800The amount available…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: The term portfolio beta refers to the measure of the riskiness of the whole portfolio in relation to…

Q: Julie wants to create a $5,000 portfolio. She also wants to invest as much as possible in a…

A: Beta-Beta is a measure of systematic risk.A value of beta above 1- It means that the stock or…

Q: An individual has $36000 invested in Stock A with a beta of 1.1 and another $35000 invested in Stock…

A: Stock A investment = 36000 Stock B investment =35000 Stock A beta =1.1 Stock B beta =1.4 Total…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: A portfolio refers to the collection of financial investments like stocks, bonds, commodities, cash,…

Q: wns ns a risky LOCK and arning 16.5 percent on he at stock. Which one of the escribes the 16.5…

A: Explanation : In simple words, The expected return can be understood as the benefit or losses that…

Q: After learning the course, you divide your portfolio into three equal parts, with one part in…

A: The beta of overall portfolio is calculated as weighted proportion of beta into each respective…

Q: Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a…

A: The beta of the stock refers to the risk factor which then gets multiplied by the market risk…

Q: You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks.…

A: Here,Value of Portfolio is $2,000,000Value of Stock Sold is $100,000Value of Stock Purchased is…

Q: *Harry has chosen only two stocks to invest in his portfolio: Stock X and Stock Y. According to the…

A: The beta of a portfolio is a measure of its sensitivity to market movements compared to a benchmark…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: The portfolio beta can be computed as sum of betas of stock divided by the number of stocks.

Q: Max wants a portfolio with a beta of 1.2. He currently has two stocks in his portfolio. Stock A with…

A: Using Capital Asset Pricing Model expected return is calculated. Expected return = risk free rate +…

Q: What will be his portfolio weight for Share D

A: First, we need to determine the amount invested in Share D. This can be determined with the formula…

Q: An individual has $93,000.00 invested in a stock with a beta of 0.70 and another $34,000.00 invested…

A: Value of Stock 1 = v1 = $93,000Beta of Stock 1 = b1 = 0.70Value of Stock 2 = v2 = $34,000Beta of…

Q: Tom invests two stocks, Target Corporation and Amazon Inc. The market value of Target stock is…

A: A collection of multiple investment avenues in which an investor infuses his money is considered as…

Q: Kelly has investments with the following characteristics in her portfolio:   Investment in Beta…

A: We will use CAPM (Capital Asset Pricing Model) to calculate expected rate of return of Kelly's…

Q: Elsi is a risk-averse investor. She has invested 60% of her investment in share A and all the…

A: Weight of A = 60% Weight of  B = 100% - 60% = 40% Expected return on A = 10% Expected return on B =…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: Old Portfolio Beta = 1.35Total Number of stock = 20Beta of Sold Stock = 1.0Beta of purchase Stock=…

Q: us $45,000 invested in a stock with

A:

Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has a…

A: We will only answer the first three subparts, for the remianing subparts, kindly resubmit the…

Q: You have $208,567 to invest in a stock portfolio (this amount is your original wealth). Your choices…

A: The total amount available is $208,567. The amount invested in stock L is $45,426. Amount available…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: A group of financial assets such as stocks, bonds, commodities, cash, and cash equivalents, as well…

Q: Hyacinth Macaw invests 50% of her funds in stock I and the balance in stock J. The standard…

A: Variance is a statistical measure that quantifies the spread or dispersion of a dataset. It measures…

Q: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5…

A: This consists of two parts: In the first part we need to calculate the beta of the portfolio. In the…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: New beta of the portfolio would be 1.94.Explanation:To calculate the new beta of the portfolio after…

Q: 8.2 An individual has $20,000 invested in a stock with a beta of 0.8 and another $55,000 invested…

A: Portfolio is a bundle of various investment. Each investment consist some risk which is measure by…

Q: Tasman Co. has a beta of 0.9, and an expected return of 15%. Macquarie Co. has a beta of 1.2 and an…

A: Here,Expected Return of T is 15%Beta of T is 0.90Expected Return of M is 16%Beta of M is 1.2Risk…

Q: Mrs. Landis has a 2-stock portfolio with a total value of $520,000.  $175,000 is invested in Stock A…

A: Beta of a portfolio is the summation of weighted average beta of individual stocks constituting the…

Q: Jamie has wealth of $10,000 to invest. The market portfolio consists of three stocks with 20% being…

A: Calculate the weights of the market portfolio:Stock A weight: 20%Stock B weight: 40%Stock C weight:…