After evaluating the overall market and biotech industry, you have identified Gleasig Labs as a potential new addition to your portfolio. The company has a beta of 1.9 based on annual returns. If the current risk-risk free rate of return is 4.97% and the return on the market portfolio is 9.4%, how much return should you require from Gleasig Labs? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%).
After evaluating the overall market and biotech industry, you have identified Gleasig Labs as a potential...
After evaluating the overall market and biotech industry, you have identified Gleasig Labs as a potential new addition to your portfolio. The company has a beta of 2.1 based on annual returns. If the current risk-risk free rate of return is 2.39% and the return on the market portfolio is 10.24%, how much return should you require from Gleasig Labs? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%).
4. Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be: -18% in recession, +9% in moderate growth, and +33% in a boom. Estimates for the market as a whole in the same economic states are -10% in recession, +10% in moderate growth, and +22% in boom. The analyst considers each state...
9,Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be: -18% in recession, +11% in moderate growth, and +36% in a boom. Estimates for the market as a whole in the same economic states are -10% in recession, +9% in moderate growth, and +21% in boom. The analyst considers each state to...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta, c. Given...
can I please have answer with solutions? thank you! Stocks with higher market risk should have higher returns. True 40.) Aztec stock two times risky as the market on average. Given the market risk premium of 10%, a risk freera using CAPM what is the expected return of Aztec? 41.) You purchased a share of stock for $35.40 seven years ago, and sold it today for $58.37. No dividends were paid out of the seven years, but you did receive...
Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and Garten Testing, Inc. The risk- free rate is 5.0 percent, the expected return on the market is 11.8 percent, and the betas of the two stocks are 1.2 and 0.7 respectively. Stevens's own forecasts of the returns on the two stocks are 16.00 percent for Furhman Labs and 11.00 percent for Garten a. Calculate the required return for each stock. (Do not round Intermediate calculations....
Check my wol You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset Portfolio 11.55 10.5 10.9 oped Market Risk-free Assume that the correlation of returns on Portfolio Y to returns on the market is 0.76 What is the percentage of Portfolio Ys return that is driven by the market? (Round your answer to 4 decimal places.) Print
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit
Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and Garten Testing, Inc. The risk- free rate is 5.4 percent, the expected return on the market is 12.6 percent, and the betas of the two stocks are 1.6 and 0.8, respectively. Stevens's own forecasts of the returns on the two stocks are 16.80 percent for Furhman Labs and 11.40 percent for Garten. a. Calculate the required return for each stock. (Do not round Intermediate calculations....
An investor is looking at a stock that has four possible values in the next year. The probabilities and returns are shown below. OUTCOME: Probability Return Strong Economy 0.24 25.00% Good Economy 0.26 10.00% Poor Economy 0.32 0.00% Recession 0.18 -11.00% What is the standard deviation of these returns based on the probabilities? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) #10 A...