An individual has $50,000 invested in a stock with a beta of 0.5 and another $70,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
Total Portfolio value = Value of Stock 1 + Value of Stock 2 |
=50000+70000 |
=120000 |
Weight of Stock 1 = Value of Stock 1/Total Portfolio Value |
= 50000/120000 |
=0.4167 |
Weight of Stock 2 = Value of Stock 2/Total Portfolio Value |
= 70000/120000 |
=0.5833 |
Beta of Portfolio = Weight of Stock 1*Beta of Stock 1+Weight of Stock 2*Beta of Stock 2 |
Beta of Portfolio = 0.5*0.4167+1.4*0.5833 |
Beta of Portfolio = 1.03 |
An individual has $50,000 invested in a stock with a beta of 0.5 and another $70,000...
8.2 An individual has $20,000 invested in a stock with a beta of 0.5 and another $50,000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $45,000 invested in a stock with a beta of 0.6 and another $70,000 invested in a stock with a beta of 1.6. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $30,000 invested in a stock with a beta of 0.4 and another $70,000 invested in a stock with a beta of 1.7. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $40,000 invested in a stock with a beta of 0.8 and another $80,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $30,000 invested in a stock with a beta of 0.6 and another $30,000 invested in a stock with a beta of 1.8. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $25,000 invested in a stock with a beta of 0.3 and another $80,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $30,000 invested in a stock with a beta of 0.4 and another $75,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
An individual has $20,000 invested in a stock with a beta of 0.3 and another $35,000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
1) A)An individual has $35,000 invested in a stock with a beta of 0.3 and another $40,000 invested in a stock with a beta of 2.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places. b)Assume that the risk-free rate is 2.5% and the required return on the market is 9%. What is the required rate of return on a stock with...
An individual has $25,000 invested in a stock with a beta of 0.7 and another $40,000 invested in a stock with a beta of 2.2. If these are the only two investment in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.