What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PORTFOLIO BETA.             %   If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) REQUIRED RETURN.

Suppose you invested in the following three stocks and their corresponding Betas are as follows: Stocks Invested amount Beta Pfizer $9,038 1.56 Uber $2,194 0.83 Twitter $9.052 1.37 What is the beta of your portfolio (all investments)? (Round your answer to 2 decimal point)

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Nikul

8. Problem 8.16 (CAPM and Portfolio Return) eBook Problem Walk-Through You have been managing a $5 million portfolio that has beta of 1.15 and a required rate of return of 8.175%. The current risk-free rate is 3%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %

Portfolio Beta Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 2.3. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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.) NEW PORTFOLIO BETA.          %

13. Assume you own the following portfolio: Stock A B C D Price #shares beta 140 20,000 1.2 600 8,000 2.0 50 30,000 0.8 120 30,000 1.4 It is 2/15 and you want to hedge till 7/31. You have the following contracts on the S&P500 index available to you. The correlation between your portfolio and the E-mini S&P500 index is 0.85 Maturity March June September December futures value 3120 3140 3150 3180 a. Which is the appropriate maturity of the contract? b. Should you go long or short on the futures contract? c. What are the optimal number of contracts? d. How effective can you expect your hedge to be? Answer: a. Since contract has to expire after the hedge date the appropriate contract is September b. I have a long position and the correlation is positive so I would take a short position in the futures contract c. Number of futures contract is given by Ny = () ) Stock Price #shares beta MV=P*Q ABCD 140 20,000 1.2 2,800,000 0.22 600 8,000 2.0 4,800,000 0.37 50 30,000 0.8 1,500,000 0.12 120…

A-Z 11. Problem 8.07 (Portfolio Required Return) O Ofice еВook Problem Walk-Through Suppose you are the money manager of a $4.44 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 200,000 1.50 B 300,000 (0.50) 1,340,000 1.25 D 2,600,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %