Find the portfolio beta, You own a stock portfolio invested

Find the portfolio beta

Reference no: EM1352850

1. You own a stock portfolio invested 25% in stock Q, 20% in stock R, 15% in stock S, and 40% in stock T. The betas for these stocks are .84, 1.17, 1.11, and 1.36 respectively. What is the portfolio beta?

2. (Using CAPM) A stock has a beta of 1.05, the expected return on the market is 11 % and the risk-free rate is 5.2 %. What must the expected return on the stock be?

3. (Using CAPM) A stock has an expected return of 10.2%, the risk-free rate is 4.5%, and the market risk premium is 8.5%. What must the beta of this stock be?

4. (Using CAPM) A stock has an expected return of 13.5%, its beta is 1.17 and the risk-free rate is 5.5%. What must the expected return on the market be?

5. (Using CAPM) A stock has an expected return of 14%, its beta is 1.45, and the expected return on the market is 11.5%. What must the risk-free rate be?

Reference no: EM1352850

Questions Cloud

The role of the finance department : Assume the role of the finance department at On Your Mark. As a division manager, how might the finance department help you to successful finish the duties of your job?

Explaining deficiencies and how do they affect business : Methods exhibit some major shortcomings as information management tools. What are some of these deficiencies and how do they affect the business?

Organizational psychology applied to recruitment : Address are the recruitment process from an organizational and applicant perspective and how the principles of organizational psychology can be used in the recruiting process.

Behavior therapy-mental health counseling : Describe one deficit of behavior therapy in the practice of mental health counseling.

Find the portfolio beta : You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15% in stock S, and 40% in stock T. The betas for these stocks are .84, 1.17, 1.11, and 1.36 respectively.

Develop a series of dialogs that attendant may encounter : The gas-pump service technician has a laptop with software designed to query and control the electronic gas pump over a communication link. Develop a series of dialogs that the attendant may encounter when troubleshooting the pump.

Evalute an environmental problem and explain how : Evalute an environmental problem and explain how one of the three groups might resolve it? There is no word limit for the solution.

Organizational psychology and ethics : Organizational Psychology and Ethics - A description of how a master's degree in OPD will help you attain your goals in the profession and practice of psychology.

Alfred adler theory of personality theory : What are some of the things that you dislike about Alfred Adler's theory of personality theory?

User Account

All Pages