Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You have a portfolio consisting of Intel, GE, and Con Edison. You put 20% in Intel, 65% in GE and 15% in Con Edison. Intel, GE and Con Edison have betas of 1.25, 0.79, and 1.81 respectively. What is your portfolio beta?
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- Fremont Enterprises has an expected return of 14% and Laurelhurst News has an expected return of 19%. If you put 44% of your portfolio in Laurelhurst and 56% in Fremont, what is the expected return of your portfolio? The expected return on the portfolio is \%. (Rounded to two decimal places.)arrow_forwardPepsi Corporation (PEP) has a beta of 0.62. If the market return is expected to be 9% and the risk-free rate is 1%, what is Pepsi’s required return?arrow_forwardBeta of a project. Magellan is adding a project to the company portfolio and has the following information: the expected market return is 12.7%, the risk-free rate is 2.4%, and the expected return on the new project is 16.5%. What is the project's beta? What is the project's beta? (Round to three decimal places.)arrow_forward
- A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percentarrow_forwardFremont Enterprises has an expected return of 13% and Laurelhurst News has an expected return of 22%. If you put 40% of your portfolio in Laurelhurst and 60% in Fremont, what is the expected return of your portfolio? The expected return on the portfolio is %. (Rounded to two decimal places.)arrow_forwardBhupatbhaiarrow_forward
- Beta of a project. Magellan is adding a project to the company portfolio and has the following information: the expected market return is 10.8%, the risk-free rate is 2.5%, and the expected return on the new project is 14.4%. What is theproject's beta? What is the project's beta? (Round to three decimal places.)arrow_forward“The expected return on an investment with a beta of 1.5 is 150% as high as theexpected return on the market portfolio.” Is this statement true or false? Pleaseexplain briefly.arrow_forwardEJH has a beta of 1.4, CSH has a beta of 0.4, and KMS has a beta of 1. If you put 26% of your money in EJH, 25% in CSH, and 49% in KMS, what is the beta of your portfolio? The beta of your portfolio is __ ? (Round to two decimal places.)arrow_forward
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