What is the beta of a portfolio where you invest 40% of your money on a stock with a beta of 0.8 and the rest on a stock with a beta of 1.6? Do not round.
Beta of portfolio is weighted average of the beta of constituents.
Beta of portfolio = Weight1 * Beta1 + Weight2 * Beta2
Beta of portfolio = 40% * 0.8 + 60% * 1.6
Beta of portfolio = 0.32 + 0.96
Beta of portfolio = 1.28
What is the beta of a portfolio where you invest 40% of your money on a...
What is the beta of a portfolio where you invest 40% of your money on a stock with a beta of 0.8 and the rest on a stock with a beta of 1.6? Do not round.
What is the beta of a portfolio where you invest 40% of your money on a stock with a beta of 0.8 and the rest on a stock with a beta of 1.6? Do not round.
What is the beta of a portfolio where you invest 40% of your money on a stock with a beta of 0.8 and the rest on a stock with a beta of 1.6? Do not round.
You have $150,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 10.35 percent. Stock X has an expected return of 9.54 percent and a beta of 1.24 and Stock Y has an expected return of 6.42 percent and a beta of .72. How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not...
You have $134,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 13 percent and that has only 72 percent of the risk of the overall market. If X has an expected return of 32 percent and a beta of 1.6, Y has an expected return of 20 percent and a beta of 1.2, and...
You have a portfolio with a beta of 1.20. What will be the new portfolio beta if you keep 87 percent of y money in the old portfolio and 13 percent in a stock with a beta of 0.66? (Do not round intermedia calculations. Round your final answer to 2 decimal places.) New portfolio beta
You have a portfolio with a beta of 1.08. What will be the new portfolio if you keep 88 percent of your money in the old portfolio and 12 percent in a stock with a beta of 0.51? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
You have $10,000 to invest in a portfolio containing Stock R, Stock S, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15% and that has only 120% of the risk of the overall market. If Stock R has an expected return of 25% and a beta of 1.6, Stock S has an expected return of 17.5% and a beta of 1.3, and the risk-free...
You have a portfolio with a beta of 1.18. What will be the new portfolio beta if you keep 87 percent of your money in the old portfolio and 13 percent in a stock with a beta of 0.59? (Round your answer to 2 decimal places.)
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