User Account

All Pages

Calculation of portfolio return and beta and risk involved

Assignment Help Finance Basics
Reference no: EM1316602

Calculation of Portfolio Return, Beta and risk involved

Risk & Return

A stock has beta of 1.5 and an expected return of 11%. A risk free asset earns 2%.

(a) What is the expected return on a portfolio that is equally invested in the two assets?

(b) If a portfolio of the two assets has a beta of 0.9 what are the portfolio weights?

(c) If a portfolio of the two assets has an expected return of 9%, what is the beta?

(d) If a portfolio of the two assets has a beta of 1.80, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain.

Reference no: EM1316602

Questions Cloud

Would a better economy lead you to switch jobs : If a worker is chosen at random, what is the probability that he or she.Is very improbable to switch jobs. Is somewhat likely or very likely to switch jobs.
Sample size for finding the population proportion : Supposing that the entire $10,000 can be spent on tires (ignoring other costs), and that the true fraction that will fail is approximately .05, can NHTSA attain its goal while staying within the budget? Describe.
Perform the operation and make the result in standard form : Perform the operation and make the result in standard form
Elucidate the mean and standard deviation : Illustrate what can we say about the probability distribution. Is it approximately normal, elucidate the mean and standard deviation.
Calculation of portfolio return and beta and risk involved : Calculation of Portfolio Return and Beta and risk involved and what is the expected return on a portfolio that is equally invested in the two assets
Check for symmetry : Check for symmetry with respect to the x and y-axis and the origin.
Anything about the distribution of sample means : Assume if random samples of size n = 9 are selected can we say anything about the distribution of sample means.
Probability to estimate the population proportion : Use the study to estimate the risk of an air bag fatality on a child seated on the front passenger seat.
The probability that the freshman selected at random : Among 500 freshmen pursuing a business degree at a university, 347 are enrolled in an economics course, 204 are enrolled in a mathematics course, and 160 are enrolled in both an economics and a mathematics course.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining internal rate of return

Determine the internal rate of return compounded annually on this investment?

  Objective type questions on working capital management

Objective type questions on working capital management and we cannot determine the aggressiveness or conservatism of the company's working capital financing policy

  Discuss on anon don or continue of the project using npv

Discuss on anon don or continue of the project using NPV analysis and What is the NPV of the option to continue

  Make of statement of stockholders'' equity

Make of statement of stockholders' equity and A company had the following balances in its stockholders' equity accounts at December

  Pay some university expenses

Portfolio's beta is 1.5. Thomas is allowing for selling particular stock to aid pay some university expenses.

  Calculation of net present value of convertible bond

Calculation of Net present value of convertible bond and what is the Aramis Inc.'s net present value of its interest savings

  Industry median cycles

Briefly describe why the Company's operating cycle and cash-to-cash cycle differs from the industry median cycles - Deriving days in inventory, cash to cash cycle and operating cycle using ratios

  Foreign exchange currency risk and forward market hedge

How many in U.S. dollars did firm save by eradicating its foreign exchange currency risk with its forward market hedge?

  Computation of depreciation expense

Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense

  Lender expect the inflation rate to be in the loans second

Illustrate what does the lender expect the inflation rate to be in the loan's second yr?

  Explain venture capital calculations

Explain Venture capital calculations and you consider opening a business that allows them to let off steam and get rid of their aggression

  Computation of contract investment realization

Computation of Contract Investment realization and definition of the term hedging and You hold the option until the expiration date when IBM stock

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd