Fill the blanks based on the figure below.
(a) This line is called ________________________.
(b) The expected return on the market portfolio is _________.
(c) The beta for a portfolio with an expected return of 12.5% is _________.
(d) The expected return for a portfolio with a beta of .5 is _________.
(e) The alpha of a portfolio with a beta of 2 and actual return of 15% is _________.
Homework Answers
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Fill the blanks based on the figure below.
(a) This line is called ________________________.
(b) The...
According to the Treynor meassure. Which of the following portfolios are outperforming the market portfolio? The...
According to the Treynor meassure. Which of the following portfolios are outperforming the market portfolio? The risk free rate of interest is 5% Portfolio A: Standard deviation: 20%, Expected return: 14%. The covariance between the portfolio and the market portfolio is 0,045 Portfolio B: Expected return: 25% (according to CAPM) Portfolio C: Alpha: -1%: Beta: 2 Portfolio D: Expected return: 11%: Beta 0,8 The market portfolio: Standard deviation: 15%, Expected return: 10%, Select one: a. Portfolio A b. Portfolio C...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio...
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...
Portfolio return and beta Personal Finance Problem Jamie Peters invested $122,000 to set up the following...
Portfolio return and beta Personal Finance Problem Jamie Peters invested $122,000 to set up the following portfolio one ye X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. Calculate the portfolio bela on the basis of the original cost figures. b. Calculate the percentage return of each asset in the portfolio for the year. c. Calculate the percentage retum of the portfolio...
1. 2. Fill in the blanks Consider the following information: State of Probability of Portfolio Return...
1.
2. Fill in the blanks
Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession .28 - 13 Boom .72 .23 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of 7 and an expected return...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 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 the foregoing information, plot the...
This is not a multiple choice question. Please fill in the blanks by order (A), (B),...
This is not a multiple choice question. Please fill in the
blanks by order (A), (B), (C), (D), and (E).
(7.6) The return on any stock traded in a financial market is composed of two parts. First, the (A))return from the stock is the part of the return that shareholders in the market predict or expect. The second part of the return on the stock is the , or r)part. This is the portion that comes from , part. This...
The cum iieret on te le T-B AR The maket cgects that the Fed wi e...
The cum iieret on te le T-B AR The maket cgects that the Fed wi e the ate nl vear the the esped Ta TAPRI Aonding to the expectt potheis the c 1e d 20. offer an iere te of AR 2 5% 4) 7% You are bulli ona phamail stok The stock i cmly ding S00 per hare and you have S6.000 of vr se imet Yu bomow an adional 54000 fm your beoker and invetio.0 in the stock,...
8-3a Expected Portfolio Returns Calculate the expected return of the portfolio based on the following individual...
8-3a Expected Portfolio Returns Calculate the expected return of the portfolio based on the following individual investments and its percentage of the total portfolio. Expected Return Weight -5.4% 10% 3% 23% 3.9% 20% 10% 0% 50% 20% B. 8-3b Portfolio Risk Based on the expected portfolio retums below, te expected return for the portfolio is 5.8% (you can check this). Calculate the standard deviation of the following portfolio: Expected Return Probability 10% 1% 8-3e Beta-Part 1 Returns on technology stocks...
Need ASAP Just Answers Question 36 Based on the capital asset pricing model, which one of...
Need ASAP Just Answers Question 36 Based on the capital asset pricing model, which one of the following must increase the expected return on an individual security, all else constant? Select one: a. An increase in the risk level of that security as measured by the standard deviation b. An increase in the risk-free rate given a security beta of 1.42 c. A decrease in the market rate of return given a security beta of 1.13 d. A decrease in...
1. You are working in a financial intermediary and your manager asks you to analyze stocks of two different companies trading on Borsa İstanbul. The first company is called R&H Inc. (RHI) an...
1. You are working in a financial intermediary and your manager asks you to analyze stocks of two different companies trading on Borsa İstanbul. The first company is called R&H Inc. (RHI) and the second company is called M&L Corp. (MLC). Both of these companies are in consumer's goods industry and founded at the beginning of the 20th century. You do not know what the returns on these company stocks will be for the next year but you have some...
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...
Portfolio return and beta Personal Finance Problem Jamie Peters invested $122,000 to set up the following portfolio one ye X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. Calculate the portfolio bela on the basis of the original cost figures. b. Calculate the percentage return of each asset in the portfolio for the year. c. Calculate the percentage retum of the portfolio...
1.
2. Fill in the blanks
Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession .28 - 13 Boom .72 .23 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of 7 and an expected return...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 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 the foregoing information, plot the...
This is not a multiple choice question. Please fill in the
blanks by order (A), (B), (C), (D), and (E).
(7.6) The return on any stock traded in a financial market is composed of two parts. First, the (A))return from the stock is the part of the return that shareholders in the market predict or expect. The second part of the return on the stock is the , or r)part. This is the portion that comes from , part. This...
The cum iieret on te le T-B AR The maket cgects that the Fed wi e the ate nl vear the the esped Ta TAPRI Aonding to the expectt potheis the c 1e d 20. offer an iere te of AR 2 5% 4) 7% You are bulli ona phamail stok The stock i cmly ding S00 per hare and you have S6.000 of vr se imet Yu bomow an adional 54000 fm your beoker and invetio.0 in the stock,...
8-3a Expected Portfolio Returns Calculate the expected return of the portfolio based on the following individual investments and its percentage of the total portfolio. Expected Return Weight -5.4% 10% 3% 23% 3.9% 20% 10% 0% 50% 20% B. 8-3b Portfolio Risk Based on the expected portfolio retums below, te expected return for the portfolio is 5.8% (you can check this). Calculate the standard deviation of the following portfolio: Expected Return Probability 10% 1% 8-3e Beta-Part 1 Returns on technology stocks...
1. You are working in a financial intermediary and your manager asks you to analyze stocks of two different companies trading on Borsa İstanbul. The first company is called R&H Inc. (RHI) and the second company is called M&L Corp. (MLC). Both of these companies are in consumer's goods industry and founded at the beginning of the 20th century. You do not know what the returns on these company stocks will be for the next year but you have some...
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