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QUESTION 15 Because you are an avid investor, you purchased the stocks below: Based on the...
You wish to calculate the risk level of your portfolio based on its beta.The five stocks...
You wish to calculate the risk level of your portfolio based on its beta.The five stocks in the portfolio with their respective weights and betas are shown in the accompanying table. Calculate the beta of your portfolio. stock: alpha, centauri, Zen Wren, Yukos: Portfolio weighs 20%, 10%, 15%, 20%, 35%; Beta: 1.15, 0.85, 1.60, 1.35, 1.85
Question 3 (total of 20 marks): An investor holds a portfolio comprising three assets (or stocks)...
Question 3 (total of 20 marks): An investor holds a portfolio comprising three assets (or stocks) A, B and C. Refer to the below tables to answer the questions that follow. Assume that returns are effective annual rates: Variables Stock A Stock B Stock C 33% 40% 25% Stock return standard deviation 0.25 $ 55,000.00 0.33 35,000.00 0.22 10,000.00 Investment $ $ Assume the following information holds: Correlation coefficient of the returns between A & B 0.10 Correlation coefficient of...
4 Stocks below A В C Е 1 25 POINTS 2 You currently own the four...
4 Stocks below
A В C Е 1 25 POINTS 2 You currently own the four stocks below. 3 4 1. Please compute the portfolio beta and expected return. Put your final answers in the 5 provided green shaded cells. 6 2. Which of the stocks should you sell? Why? 7 10 11 3. Assume you sell the stock you mentioned in #2 above and invest the proceeds in an S&P 12 500 index fund. What will your new portfolio...
can I please have answer with solutions? thank you! Stocks with higher market risk should have...
can I please have answer with solutions? thank you!
Stocks with higher market risk should have higher returns. True 40.) Aztec stock two times risky as the market on average. Given the market risk premium of 10%, a risk freera using CAPM what is the expected return of Aztec? 41.) You purchased a share of stock for $35.40 seven years ago, and sold it today for $58.37. No dividends were paid out of the seven years, but you did receive...
Question 51 pts You have observed the following returns on Stock A's stocks over the last...
Question 51 pts You have observed the following returns on Stock A's stocks over the last five years: 2.65%, 7.38%, -1.3%, -3.43%, 16.32% What is the average return on the stock over this five-year period? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. If the answer is negative, do enter the negative sign. Question 61 pts You purchased 114 shares of Best Buy CO., Inc for $57.96 per...
As an investor, based on your goals and investment objectives you create an investment plan. You...
As an investor, based on your goals and investment objectives you create an investment plan. You choose your stockbroker that suits your needs. But when it is time to actually buy or sell securities in the securities market, it is important to understand how your transactions will be executed. Based on your expectations regarding a specific transaction you have the option to select from three different order types: market order, limit order and a stop-loss order. Janis is an experienced...
Question 1: Cooley Company's stock has a beta (b) of 1.28, the risk-free rate (rRF) is...
Question 1: Cooley Company's stock has a beta (b) of 1.28, the risk-free rate (rRF) is 1.25%, and the market risk premium (RPM) is 5.50%. a. What does the beta measure? Give a short answer in 1 sentence. b. What is market risk premium? Give a short answer in 1 sentence. c. Calculate the firm's required rate of return? Show the step-by-step calculation and circle your answer. (Hint: Required return = rRF + b(RPM)) Question 2: Consider the following information...
1. The table below shows the expected rates of return for three stocks and their weight...
1. The table below shows the expected rates of return for three stocks and their weight in some portfolio: Stock A Stock B Stock C Expected return 0.05 0.03 0.13 Weight 0.5 0.2 0.3 a. What is the expected portfolio return? 2. You've assembled the following portfolio: Stock Expected return Portfolio weight 1 6.1% 30% 2 13.6% 3 17.3% a. What is the weight for stock 3 if you want to achieve an expected portfolio return of 15%? 3. You've...
Question 121 pts You purchased one share of Best Buy CO., Inc for $59.38 per share....
Question 121 pts You purchased one share of Best Buy CO., Inc for $59.38 per share. The company paid a dividend of $7.08 per share during the year, and had an ending share price of $60. What is the percentage return? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. Question 131 pts You...
tHANK YOU 18. You are comparing stock A to stock B. stocks should you prefer and...
tHANK YOU
18. You are comparing stock A to stock B. stocks should you prefer and why? ven the following information, which one of these two REXEL UNIVERSITY- State of Rate of Return if Probability of Economy State of Economy StoskA Stok A. Stock A; because it has B, C. Stock Stock A; because it has higher expected an expected return of 7% and appears to be more risky expected return and appears to be less risky than stock B...
Question 3 (total of 20 marks): An investor holds a portfolio comprising three assets (or stocks) A, B and C. Refer to the below tables to answer the questions that follow. Assume that returns are effective annual rates: Variables Stock A Stock B Stock C 33% 40% 25% Stock return standard deviation 0.25 $ 55,000.00 0.33 35,000.00 0.22 10,000.00 Investment $ $ Assume the following information holds: Correlation coefficient of the returns between A & B 0.10 Correlation coefficient of...
4 Stocks below
A В C Е 1 25 POINTS 2 You currently own the four stocks below. 3 4 1. Please compute the portfolio beta and expected return. Put your final answers in the 5 provided green shaded cells. 6 2. Which of the stocks should you sell? Why? 7 10 11 3. Assume you sell the stock you mentioned in #2 above and invest the proceeds in an S&P 12 500 index fund. What will your new portfolio...
can I please have answer with solutions? thank you!
Stocks with higher market risk should have higher returns. True 40.) Aztec stock two times risky as the market on average. Given the market risk premium of 10%, a risk freera using CAPM what is the expected return of Aztec? 41.) You purchased a share of stock for $35.40 seven years ago, and sold it today for $58.37. No dividends were paid out of the seven years, but you did receive...
As an investor, based on your goals and investment objectives you create an investment plan. You choose your stockbroker that suits your needs. But when it is time to actually buy or sell securities in the securities market, it is important to understand how your transactions will be executed. Based on your expectations regarding a specific transaction you have the option to select from three different order types: market order, limit order and a stop-loss order. Janis is an experienced...
tHANK YOU
18. You are comparing stock A to stock B. stocks should you prefer and why? ven the following information, which one of these two REXEL UNIVERSITY- State of Rate of Return if Probability of Economy State of Economy StoskA Stok A. Stock A; because it has B, C. Stock Stock A; because it has higher expected an expected return of 7% and appears to be more risky expected return and appears to be less risky than stock B...
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