Homework Answers
Relationship between Portfolio return and beta =Risk free rate +
Beta*(Market Return -Risk free rate)
Portfolio Beta =(Portfolio Expected Return -Risk free rate)/(Market
Return -Risk free rate)
Slope of SML is market risk premium =(Expected return-Risk free
rate)/Beta =(12.3%-4%)/1.2 =6.92%
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Asset W has an expected return of 12.3 percent and a beta of 1.2. If the...
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Asset W has an expected return of 11.6 percent and a beta of 1.30o. If the risk-free rate is 3.8 percent, complete the following table for portfolios of Asset W and a risk-free asset |(Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio Portfolio Expected...
Show steps by steps thank you! Asset W has an expected return of 10.8 percent and...
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you!
Asset W has an expected return of 10.8 percent and a beta of 1.25. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g.,...
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Asset W has an expected return of 13.35 percent and a beta of 1.32. If the risk-free rate is 4.57 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to 3 decimal places, e.g., 32.161.) Percentage...
Problem 13-17 Using the SML (LO4) Asset W has an expected return of 11.8 percent and...
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Saved Asset W has an expected return of 13.45 percent and a beta of 1.34. If...
Saved Asset W has an expected return of 13.45 percent and a beta of 1.34. If the risk-free rate is 4.59 percent, complete the following table for portfolos of Asset W and a risk-free asset (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to 3 decimal places, e.g., 32.161.)...
Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while...
Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is
Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is
A stock has a beta of .75, the expected return on the market is 11 percent,...
A stock has a beta of .75, the expected return on the market is 11 percent, and the risk-free rate is 4 percent. a. What must the expected return on this stock be? b. Draw the Security Market Line (SML) -be sure to label all relevant points- c. Suppose the risk free rate falls to 3%. What is the expected return on this stock? Redraw the SML. How has the shape of the curve changed? d. ...
Asset W has an expected return of 12.0 percent and a beta of 1.25. If the...
Asset W has an expected return of 12.0 percent and a beta of 1.25. If the risk-free rate is 4.6 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Market risk premium %
13. A stock has a beta of 1.2 and an expected return of 17 percent. A...
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Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z...
Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an expected return of 9.3 percent. If the risk-free rate is 5.6 percent and the market risk premium is 6.6 percent, the reward-to-risk percent, respectively. Since ratios for Stocks Y and Z are and the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent...
Asset W has an expected return of 11.6 percent and a beta of 1.30o. If the risk-free rate is 3.8 percent, complete the following table for portfolios of Asset W and a risk-free asset |(Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Percentage of Portfolio Portfolio Expected...
Show steps by steps thank
you!
Asset W has an expected return of 10.8 percent and a beta of 1.25. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g.,...
Problem 13-17 Using the SML (LO4) Asset W has an expected return of 11.8 percent and a beta of 1.20. If the risk-free rate is 3.4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g.,...
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