You have a portfolio that is invested 19 percent in Stock A, 32 percent in Stock B, and 49 percent in Stock C. The betas of the stocks are .74, 1.29, and 1.48, respectively. What is the beta of the portfolio? 0.98 1.28 O 1.22 1.33 O 1.10
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- You have a portfolio that is invested 23 percent in Stock A, 36 percent in Stock B, 41 percent in Stock C, and the remainder in a risk free asset. The betas of the stocks are.68, 1.23.and 1.52, respectively. What is the beta of the portfolio? O1.10 1.14 O1.22 O118 O1.38You have a portfolio that is invested 22 percent in Stock A, 32 percent in Stock B, and 46 percent in Stock C. The betas of the stocks are .67, 1.22, and 1.51, respectively. What is the beta of the portfolio? Multiple Choice 1.18 1.23 1.39 1.13 1.01Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain.
- Assume that you formed a portfolio of three stocks, X, Y, and Z. The stock X's beta is 1.5, stock Y's beta is 2, and stock Z's beta is 0.5. If the weight of your wealth invested in stock X is 0.4, the weight invested in stock Y is 0.2, find the portfolio's beta.2. Consider a portfolio of three stocks. The weights of the three stocks are 0.2, 0.3, and 0.5. The betas of the three stocks are 1, 1.5, and 2. The beta of the portfolio is A. 1.55 B. 1.65 C. 1.75 D. 1.70You have a portfolio that is equally invested in Stock F with a beta of 1.09, Stock G with a beta of 1.46, and the market. What is the beta of your portfolio?
- You are given the following information concerning three portfolios, the market portfolio, and the risk- free asset: Portfolio X Y Z Market Risk-free Rp 14.5% R-squared 13.5 9.1 10.7 5.4 op 36% 31 21 26 0 6p 1.60 1.30 .80 1.00 0 Assume that the correlation of returns on Portfolio Y to returns on the market is 72. What percentage of Portfolio Y's return is driven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)You are a long-term investor, having a portfolio of stocks X, Y and Z. Stocks betas are 1.01, 0.93 and 1.33. Percentage amount invested in each is 30%, 20%, 50%. Calculate the portfolio beta. O 1.15 O 1.23 O 1.10 O 1.93Consider a portfolio consisting of the following three stocks: E The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. a. Compute the beta and expected return of each stock. b. Using your answer from part (a), calculate the expected return of the portfolio. c. What is the beta of the portfolio? d. Using your answer from part (c), calculate the expected return of the portfolio and verify that it matches your answer to part (b). a. Compute the beta and expected return of each stock. (Round to two decimal places.) TITLT Data table Portfolio Weight (A) Volatility (B) Correlation (C) Expected Return (E) % Beta (D) НЕС Согр 0.28 13% 0.33 Green Widget (Click on the following icon a in order to copy its contents into a spreadsheet.) 0.39 27% 0.61 % Portfolio Weight Alive And Well 0.33 14% 0.43 Volatility 13% Correlation with the Market Portfolio НЕС Согр Green Widget 0.28 0.33 b. Using your answer from part (a), calculate the expected…
- Consider a portfolio with stocks A, B, and C. The total value of the portfolio is $245,000 and it is fully invested in these 3 stocks. $85,653 is invested in A and $69,552 is invested in B. The Betas of stocks A, B, and C are 1.2, .8, and 1.62, respectively. What is the Beta of the portfolio overall?Question 1: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .8, -1.3, .95, 1.2 and 1.4. The risk-free return is 3% and the market return is 7%. Compute the beta of the portfolio. Compute the required return of the portfolio.A portfolio has three stocks. Their portfolio weights and expected returns are as follows. Weight E(r) Stock A 0.4 22% Stock B 0.4 4% Stock C 0.2 -18% What is the expected return on the portfolio?