Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You hold the positions in the table below.
Amazon.com
Family Dollar Stores
McKesson Corp.
Schering-Plough Corp.
Portfolio bota
Price.
$58.00
35.00
57.00
26.00
Required return
Shares
145
160
93
237
What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Beta
4.03
2.60
1.18
1.03
If you expect the market to earn 18.40 percent and the risk-free rate is 5.00 percent, what is the required return of the portfolio? (Do
not round intermediate calculations and round your final answer to 2 decimal places.)
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Transcribed Image Text:You hold the positions in the table below. Amazon.com Family Dollar Stores McKesson Corp. Schering-Plough Corp. Portfolio bota Price. $58.00 35.00 57.00 26.00 Required return Shares 145 160 93 237 What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Beta 4.03 2.60 1.18 1.03 If you expect the market to earn 18.40 percent and the risk-free rate is 5.00 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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