Reference no: EM131074642
A stock has a beta of 1.2, the expected return on the market is 11.4 percent, and the risk-free rate is 4.75 percent.
Required: What must the expected return on this stock be?
A stock has an expected return of 12 percent and a beta of 1.16, and the expected return on the market is 11 percent.
Required: What must the risk-free rate be?
Stock J has a beta of 1.2 and an expected return of 13.16 percent, while Stock K has a beta of 0.75 and an expected return of 10.1 percent.
You want a portfolio with the same risk as the market.
Requirement 1: What is the portfolio weight of each stock?
Stock J.....
Stock K.....
Requirement 2: What is the expected return of your portfolio?
You have a portfolio with the following:
Stock Number of Shares Price Expected Return
W 725 $ 46 13%
X 625 23 17
Y 375 59 15
Z 600 44 16
Required: What is the expected return of your portfolio?
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What is the portfolio weight of each stock
: A stock has a beta of 1.2, the expected return on the market is 11.4 percent, and the risk-free rate is 4.75 percent. What must the expected return on this stock be? What is the portfolio weight of each stock? What is the expected return of your port..
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