What is the amount of his unexpected return-portfolio beta

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1. Phil realized a total return of 13.2 percent which is less than his expected return of 14.4 percent. What is the amount of his unexpected return?

2. A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta of 1.31. Stock B has a beta of .98. What is the portfolio beta?

3. Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. The risky asset has a beta of 1.3 and an expected return of 14.9 percent. What is the expected return on the portfolio if the portfolio beta is .975?

4. Farm Tractors, Inc., stock has a beta of 1.12 and an expected return of 12.8 percent. The risk-free rate is 3.84 percent. What is the market rate of return?

5. A stock has a beta of 1.58 and an expected return of 16.2 percent. The risk-free rate is 3.8 percent. What is the market risk premium?

Reference no: EM13800512

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