Question 14 Question text What is the beta of the following portfolio? Stock Amount Invested Stock Beta a. 1.19 b. .98 C. 1.23 d. 1.21 e. 1.15 B $15,000 $5,000 $10,000 1.20 1.80 0.70
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- 16 [Question text] What is the beta of the following portfolio? Stock Amount invested (RM) Security beta A 14,200 1.39 B 23,900 0.98 C 8,400 1.52 Select one: A. 1.01 B. 1.05 C. 1.20 D. 1.12Question 16 a. Based on the following information, calculate the expected return and standard deviation for each of the following stocks. What are the covariance and correlation between the returns of the two stocks? Calculate the portfolio return and portfolio standard deviation if you invest equally in each asset. Returns State of Economy Prob J K Recession 0.25 -0.02 0.034 Normal 0.6 0.138 0.062 Boom 0.15 0.218 0.092 b. A portfolio that combines the risk-free asset and the market portfolio has an expected return of 7 percent and a standard deviation of 10 percent. The risk-free rate is 4 percent, and the Page 7 of 33 expected return on the market portfolio is 12 percent. Assume the capital asset pricing model holds. What expected rate of return would a security earn if it had a .45 correlation with the market portfolio and a standard deviation of 55 percent? c. Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9 percent. The market…Tiempo restante U:28:23 What is the beta of a portfolio that has $18,400 in Stock M, $6,320 in Stock N, $32,900 in Stock O and $11,850 in Stock P. Their Betas are .97, 1.04, 1.23, and .88, respectivley? O a. 1.04 O b. 1.11 О с. 1.08 O d. 1.15 O e. .99
- Question # 7 A Report a Problem G Revisit Choo A portfolio consists of three stocks A,B and C with sharpe ratios of 1.5,2 and 2.5 respectively. Calculate the proportion of investment in stock A. O 02 O. Deepanshu | Support +1 650-924-9221 +91 80D Question 6 A portfolio consists of three stocks A, B, and C. $4,700 is invested in Stock A, $4,000 in B, and $9,500 in C. Stock A has a Beta of 1.71, B has 1.33, and C has 0.84. What is the beta of the total portfolio? 1.04 1.17 1.07 1.33 1.01QUESTION 3 – Risk and ReturnSintok Corporation has collected information on the following three investments. Which investment is the most favourable based on the information presented?Stock A Stock B Stock CProbability Return Probability Return Probability Return0.15 2% 0.25 -3% 0.1 -5%0.4 7% 0.5 20% 0.4 10%0.3 10% 0.25 25% 0.3 15%0.15 15% 0.2 30%
- Intro You've assembled the following portfolio: Stock Exp. return Investment 1 6.9% 2 14.7% 3 16.3% Part 1 What is the expected return of the portfolio? 3+ decimals Submit $5,000 $12,000 $7,000Question 29 Assume the following data for a stock: risk-free rate 5 percent: beta (market) = 1.4; beta (size) - 0.4; beta (book-to- market)-1.1; market risk premium - 13 percent; size risk premium 9.7 percent; and book-to-market risk premium = 11.2 percent. Calculate the expected return on the stock using the Fama-French three-factor model. O 26.5 percent 14.8 percent O 25.1 percent 12.0 percent4 Skipped Use the following data for Questions 3-5: Value 12500 17500 20000 Stock A B C Exp. Return 8.5% 9.2% 10.6% Beta 0.8 1.2 1.4 Question 4: What is the portfolio's Beta? ENTER YOUR ANSWER ROUNDED TO 2 DECIMAL PLACES
- What is the beta of the following two stock portfolio? Security Beta of the security Amount invested A 1.35 $ 20,000 B 0.50 $ 30,000 a. 1.075 b. 1.00 c. 1.19 d. 0.84QUESTION 37 You have developed the following data on three stocks: Stocks Std. Deviation Beta A 0.45 0.60 B 0.60 0.75 C 0.55 1.50 If you are a risk minimizer, you should choose Stock a well-diversified portfolio. if it is to be held in isolation and Stock if it is to be held as part of A; A O B; A C; A O A; C O C; B 3.75 po 13Question 15 You own a portfolio that has $3,026 invested in Stock A and $4,300 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively. Required: What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)