Your investment club has only two stocks in its portfolio. $30,000 is invested in a stock with a beta of 0.8, and $40,000 is invested in a stock with a beta of 2.1. What is the portfolio's beta? round your answer to two decimal places.

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: You have $69,000. You put 20% of your money in a stock with an expected return of 13%, $40,000 in a…

A: The objective of the question is to calculate the expected return of the portfolio. The expected…

Q: An individual has $15,000 invested in a stock with a beta of 0.6 and another $80,000 invested in a…

A: Stock 1 beta (B1) = 0.60 Stock 1 investment (W1) = $ 15,000 Stock 2 beta (B2) = 1.50 Stock 2…

Q: Assume your portfolio consists of 50% of a stock with a beta of 0.936 and 50% of a stock with a beta…

A: 1) Beta is a measure of Systematic risk of a stock or portfolio.  Beta of a portfolio measures…

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: What is the below portfolio's beta assuming you have equal amounts of money invested in each stock?…

A: The evaluation of the systematic risk or volatility of a stock or the portfolio as compared to the…

Q: our investment club has only two stocks in its portfolio. $15,000 is invested in a stock with a beta…

A: Portfolio Beta is the weighted average beta of individual stock  Weight of stock 1 = 15000 /…

Q: You have $60,000. You put 17% of your money in a stock with an expected return of 11%, $38,000 in a…

A: As per the given information:to determine:the expected return of the portfolio.

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: An individual has $30,000 invested in a stock with a beta of 0.6 and another $50,000 invested in a…

A: Introduction: The term portfolio beta refers to a metric which is used in calculating the overall…

Q: An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock…

A: A portfolio is a set of varied investments made by an investor. Its beta is computed as the weighted…

Q: An individual has $10,000 invested in a stock with a beta of 0.3 and another $75,000 invested in a…

A: The objective of this question is to calculate the beta of the portfolio. Beta is a measure of the…

Q: You have $61,000. You put 16.00% of your money in a stock with an expected return of 12%, $37,000 in…

A: To find the expected return of the portfolio, we need to calculate the weighted average of the…

Q: An individual has $50,000 invested in a stock with a beta of 0.5 and another $35,000 invested in a…

A: Solution:- Beta means sensitivity of stock with reference to market. It measures the percentage…

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: A stock has a required return of 13%, the risk-free rate is 3%, and the market risk premium is 6%.…

A: Beta means the measure of changes in the stock in connection with the entire market.  Beta is…

Q: You have $50,000 to invest in three stocks. Let Ri be the random variable representing the annual…

A: Let's denote the proportion of the total investment in each stock as follows:x1 = proportion of…

Q: You have a portfolio consisting of four stocks (A, B, C, and D). You invest $2,000 in Stock A,…

A: Total portfolio value is calculated belowWeight of each stock is calculated below

Q: You are considering investing in three stocks with the following expected returns: Stock A Stock B…

A: Expected return The minimum return all investors expect from the investment made is known as the…

Q: Consider the following information:   State Probability Stock A Stock B Stock C   Boom 0.32…

A: ProbabilityBoom returnsBust returns0.32-0.150.010.320.040.030.32-0.140.27Required:Expected Return of…

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: A $33,622 portfolio is invested in a risk-free security and two stocks. The beta of Stock A is 2.1…

A: Beta measures a stock's volatility relative to the market; a value of 1 indicates alignment with…

Q: Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common…

A: Beta shows the risk related to the overall risk of market and beta of portfolio is the weighted beta…

Q: You are evaluating a stock that just paid a dividend of S4.6. Dividends are expected to grow at a…

A: This Question is based on dividend discount model. We are required to calculate the value of stock…

Q: An individual has $15,000 invested in a stock with a beta of 0.3 and another $40,000 invested in a…

A: Portfolio beta can be calculated by multiply the weight of stock with individual beta of stock.…

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: ou have a portfolio with a beta of 1.38. What will be the new portfolio beta if you keep 89 percent…

A: Portfolio Beta: It is calculated by multiplying the stock beta with the proportion of funds in that…

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

A: Given data:> Exsting beta = 0.65> selling stock beta = 1> purchasing stock beta = 1.60

Q: Suppose all possible investment opportunities in the world are limited to the five stocks listed in…

A: A portfolio is made up of two or more stocks. Here we have five stocks in total. Portfolio weight…

Q: Stock A has a beta of 1.5, stock B has a beta of 0.75, you invest 30% in A and 70% in B. What is the…

A: Beta of Portfolio = [(Stock A beta)*(weight of stock A)] + [(stock B beta)*(weight of stock B)]

Q: You own a portfolio that has a total value of $195,000 and it is invested in Stock D with a beta of…

A: Part 2: Explanation:Step 1: Calculate the beta of the portfolio:Given that the portfolio's beta is…

Q: Stock 1 has a standard deviation of return of 6%. Stock 2 has a standard deviation of return of 2%.…

A: Formulas:

Q: A person has $25,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock…

A: Portfolio beta is a measure of the overall systematic risk of a portfolio of investments. It equals…

Q: Marduk Company has a beta of 1. If the expected return on the market is 0.107, what is the expected…

A: We need to use CAPM equation to calculate expected return. Expected return = Rf +β*Rm- Rf) Where Rf…

Q: You own a portfolio that has $2,600 invested in Stock A and $3,700 invested in Stock B. Assume the…

A: The expected return is the return of the portfolio which is the sum of each potential return that is…

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: You have $56,000. You put 24% of your money in a stock with an expected return of 13%, $31,000 in a…

A: As per the given information: Total amount = $56,00024% of money invested in a stock with an…

Q: A stock has an expected return of 7.72 percent, the risk-free rate is 2.9 percent, and the market…

A: We can calculate Beta by using the CAPM model as it helps in showing the relationship between the…

Q: A stock has a required return of 9%; the risk- free rate is 4%; and the market risk premium is 3%.…

A: In the given question we are require to calculate the Beta: We can calculate the Beta using Capital…

Q: Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A…

A: Given: Total value =$100,000 Invested in stock A = $55,000 Stock A Beta = 0.75 Stock B beta = 1.79

Q: Suppose you have invested $35,000 in stocks with a Beta of 0.9 and another $17,000 invested in…

A: A portfolio consists of various securities such as shares, bonds, commodities that help the…

Q: Consider a market value-weighted index consisting of 3 stocks: A, B, and C. The stocks' prices at…

A: StockP0Q0P1Q1P0*Q0P1*Q1A43200452008,6009,000B695005050034,50025,000C11600126006,6007,20049,70041,200