What is the expected return on a portfolio

Assignment Help Other Subject
Reference no: EM13671868

Complete Problem 10 from the Questions and Problems section of Chapter 12: A stock has a beta of .9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent.

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 .5, what are the portfolio weights?
c. If a portfolio of the two assets has an expected return of 8 percent, what is its 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: EM13671868

Questions Cloud

A researcher was interested in finding out : A researcher was interested in finding out whether children's ability to exhibit self-control when offered unhealthy food changed with age. He asked parents of three-year-old, six-year-old, and nine-year-old children to bring their children in..
Mental-scanning experiments found : Mental-scanning experiments found
What cognitive theorists call : People who experience a positive event, get excited, breath harder, have an increase in their heart rate, and then interpret the symptoms as a heart attack, are experiencing what cognitive theorists call
Briefly describe whose civil rights martin luther king : Briefly describe whose civil rights Martin Luther King
What is the expected return on a portfolio : What is the expected return on a portfolio
Living in the global village : Living in the Global Village
The demand the bond market : Explain verbally and illustrate graphically what will happen to the price of bonds if expected inflation increases to 4% from 2%. Be sure to include in your answer the demand the bond market.
Review the company analysis course project description : 1.An introduction to the company and its industry, analyzing its background, industry, and structure. (For this, you can draw from the work you did for the second Unit 2 assignment.)
Compute gdpusing the product approach : Compute GDPusing the Product Approach and using the Expenditure Approach

Reviews

Write a Review

Other Subject Questions & Answers

  Explain how cultural values and ideals are reflected

Using specific examples of cultural productions from three cultures -Sumerians, Archaic Greeks (800-480 BCE), Classical Greeks (480-323 BCE)- explain how cultural values and ideals are reflected in the creation and style of cultural productions. For ..

  Describe middle adulthood provides stability-persons health

A person's lifestyle has a significant influence on the person's health and development as he or she moves into middle age (and old age). Stability and change are also common factors in an adult's life.

  Linear programming problem

Formulate the problem of finding the minimum cost way of sending flow through the network, from the source nodes to the sink nodes, subject to the node supplies/demands and the arc capacity restrictions, as a linear programming problem.

  Pervasive mental disorders of childhood

Autistic disorder and Asperger's disorder are among the most pervasive mental disorders of childhood.

  Pestel model is a broad-ranging framework

Pestel model is a broad-ranging framework where as a change agent you stretch your imagination and think outside of the box. The discussion question asked about how you would explain this model and intepret its value to you and Accent systems company..

  Define social change and discuss its factor

Explain the role of social and moralvalues in the life of an individual. Define social change and discussits factor. Discuss the role of religious anddiscuss its factors. Describe the silent features of National Education Policy 1998-2010

  Important ideological force of the modern era

Nationalism has been the single most important ideological force of the modern era. When and where did it originate, how did it spread around the world, and with what consequences?

  Where will be the greatest growth in job creation

Where will be the greatest growth in job creation? Do your own research and see if this has to come to pass

  Compare and contrast public law and private law

Compare and contrast public law and private law, and give two examples which illustrate the difference between criminal law and tort law.

  Compare and contrast strategic planning-strategic

Compare and contrast Strategic Planning, Strategic Thinking and how they impact and shape Strategy and Operational Effectiveness in Health care

  What is the activation-synthesis theory of dreams

What is the activation-synthesis theory of dreams? Who formulated it, and what evidence is there to back it up?

  Tribal lands

The displacement of Native Americans from their tribal lands in the U.S. in order to make the land available to white settlers was:

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!

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