Please note, the drop down boxes contain A and B which represents the portfolio
a). p = [Wi x i]
A = [0.07 x 1.27] + [0.33 x 0.73] + [0.09 x 1.25] + [0.14 x 1.05] + [0.37 x 0.92]
= 0.09 + 0.24 + 0.11 + 0.15 + 0.34 = 0.93
B = [0.26 x 1.27] + [0.06 x 0.73] + [0.18 x 1.25] + [0.20 x 1.05] + [0.30 x 0.92]
= 0.33 + 0.04 + 0.23 + 0.21 + 0.28 = 1.09
b). Portfolio B is more risky than the market as well as Portfolio A.
Portfolio A is less risky than the market as well as Portfolio B.
Please note, the drop down boxes contain A and B which represents the portfolio Jeanne Lewis...
Jeanne Lawis is attampting to avaluata two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interasted in using beta to compars the risk of tha portfolios and, in this regard, has gathered the following data: EB a. Calculate the betas for portfolios A and B b. Compare the risk of each portfollo to the market as well as to each other. Which portfolio is more risky? a. The beta of portlolio A...
Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: a. Calculate the betas for portfolios A and B. b. Compare the risk of each portfolio to the market as well as to each other. Which portfolio is more risky? (Round to three decimal places.) a. The...
Jeanne Lewis is attempting to evaluate two poss ble portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data a. Cakulale the betas for prfclios A and B b. Compare the risk ot each pcrttolio to the market as well as to cach other Which portolio is more risky? a. The beta at portfolio A...
Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data Portfolio Weights Asset Asset Beta Portfolio A Portfolio B 1 1.33 12% 31% 2 0.71 33% 11% 3 1.23 10% 25% 4 1.15 5% 17% 5 0.86 40% 16% Total 100% 100% a. Calculate the betas for...
(Round answer to three decimal places) Jeanne Lewis is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. She is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: a. Calculate the betas for portfolios A and B. b. Compare the risk of each portfolio to the market as well as to each other. Which portfolio is more risky? i...
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...
Portfolio betas Personal Finance Problem Rose Berry is attempting to evaluate two possible portfolios, which consist of the same five assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: a. Calculate the betas for portfolios A and B. b. Compare the risks of these portfolios to the market as well as to each other. Which portfolio is more risky?...
Note: Part a, b and c are not related to each other. a. Portfolio Man wants to create a portfolio as risky as the market and he has $1,000,000 to invest. Given this information, fill in the three missing values of the following table: Asset Investment Beta $170,000 1.6 $140,000 1.5 $130,000 $200,000 Risk-free asset b. An asset's reward-to-risk ratio is defined as its risk premium divided by its standard deviation It is a useful statistic to summarize the asset's...
Jason Jackson is attempting to evaluate two possible portfolios consisting of the same five assets but held in different proportions. He is particularly interested in using beta to compare the risk of the portfolios and, in this regard, has gathered the following data: Portfolio Weights Asset Asset Beta Port- A Port-B 1 1.32 19% 35% 2 0.74 29% 11% 3 1.29 10% 16% 4 1.06 10% 24% 5 0.92 ...
Rose Berry is attempting to evaluate 2 possible portfolios, which consist of the same 5 assets held in different proportions. She is particularly interested in using beta to compare the risks of the portfolios, so she has gathered the data shown in the following table: Portfolio Weights Asset Asset beta Portfolio A Portfolio B 1 1.30 10% 30% 2 .70 30 10 3 1.25 10 20 4 1.10 10 20 5 .90 40 20 Totals 100% 100% a. Calculate the...