What is the expected return on this portfolio

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Reference no: EM132064009

a) What is the portion of the portfolio with 200 shares of stock A with $ 50 per share and 150 shares with share of $ 30?

b) Assume that there is a portfolio of $ 3,500 in stock A and $ 4,500 in stock B. Assuming that the expected returns of these stocks are 11% and 15%, what is the expected return on this portfolio?

c) Invest $ 10,000 in a portfolio of stocks. Stocks that can be selected are stocks with expected return of 11.5% × and stocks with 9.4%. If your goal is to make the expected return on your portfolio 10.85%, how much money should you invest in Stock X? How much money should you invest in Stock Y?

d) Suppose you have a portfolio that invests 35% in stock Q, 20% in R, 15% in S and 30% in T. The beta for these stocks is 0.84, 1.17, 1.11, and 1.36, respectively. What is the beta of the portfolio?

e) Assume that there is a portfolio that is equally divided into three categories of risk-free assets and two stocks. When the beta of one stock is 1.32 and the risk of the entire portfolio is equal to market risk, what is the beta of the other stock?

f) Let's assume that a stock has a beta of 1.15, a risk-free interest rate of 3.8%, and an expected return on the market of 10.3%. What is the expected return on this stock?

Reference no: EM132064009

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