Reference no: EM131012083
Portfolio Beta Your investment club has only two stocks in its portfolio; $45,000 is invested in a stock with a beta of 0.7, and $80,000 is invested in a stock with a beta of 1.2.What is the portfolio's beta? Round your answer to two decimal places.
Required Rate of Return AA Industries's stock has a beta of 0.5. The risk-free rate is 5%, and the expected return on the market is 8%. What is the required rate of return on AA's stock? Round your answer to two decimal places.
Required Rate of Return Assume that the risk-free rate is 4% and that the market risk premium is 7%.
a. What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places.
b. What is the required rate of return on a stock with a beta of 1.9? Round your answer to two decimal places.
c. What is the required return on the market? Round your answer to two decimal places.
Required Rate of Return Suppose rRF = 3%, rM = 9%, and rA = 15%.
a. Calculate Stock A's beta. Round your answer to two decimal places.
b. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to two decimal places.
Required Rate of Return Stock R has a beta of 1.1, Stock S has a beta of 0.30, the expected rate of return on an average stock is 12%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exceed that on the less risky stock?
Round your answer to two decimal places. %
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: Portfolio Beta Your investment club has only two stocks in its portfolio; $45,000 is invested in a stock with a beta of 0.7, and $80,000 is invested in a stock with a beta of 1.2.What is the portfolio's beta? What is the required rate of return on a ..
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