What is the beta of portfolio

Assignment Help Financial Management

Reference no: EM132016026

1. You are invested 38.40% in growth stocks with a beta of 1.974, 37.80% in value stocks with a beta of 0.955, and 23.80% in the market portfolio.

What is the beta of your portfolio?

2. The market risk premium for next period is 9.30% and the risk-free rate is 2.70%. Stock Z has a beta of 0.973 and an expected return of 13.10%. What is the: "

a) Market's reward-to-risk ratio?

b) Stock Z's reward-to-risk ratio

Reference no: EM132016026

Questions Cloud

What is the total percentage return for investor : What is the total percentage return for an investor who purchased a stock for $8.82, received $3.31 in dividend payments, and sold the stock for $10.41?

Probability of above average economy : There is a 23.73% probability of an average economy and a 76.27% probability of an above average economy.

What is the cost of preference shares : What is Cax’s after-tax cost of debt is taxation is 30%? What is the cost of preference shares? What is the cost of equity?

Stock has expected return and standard deviation : A stock has an expected return of 9.69% and a standard deviation of 15.84%. Compute the following for this stock:

What is the beta of portfolio : You are invested 38.40% in growth stocks with a beta of 1.974, 37.80% in value stocks with a beta of 0.955, What is the beta of your portfolio?

Required return for stock and expected return for stock : Calculate the Required return for this stock, Expected return for this stock.

Calculate the required return and expected return for stock : Calculate the required return and expected return for this stock. What is the beta of your portfolio?

Compute the market reward-to-risk ratio : Compute the Market's reward-to-risk ratio and Stock Z's reward-to-risk ratio.

Compute the for stocks : There is a 43.67% probability of a below-average economy and a 56.33% probability of an average economy. Compute the following for Stocks A and B:

User Account

All Pages