Calculation of expected return and beta

Reference no: EM1310209

Calculation of expected return, beta, coefficient of variation, standard deviation and required rate of return

1. Portfolio beta-

An individual has $35,000 invested in a stock with a beta of 0.8 and another $40,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta?

Hint= Calculate the stock's expected return, standard deviation, and coefficient of variation.

2.Preferred stock valuation

Fee Founders has perpetual preferred stock outstanding that sells for $60 a share and pays a dividend of $5 at the end of each year. What is the required rate of return?

Reference no: EM1310209

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