A portfolio contains equal investments in 10 stocks. Five have a beta of 1.4; the remainder have a beta of .9. What is the portfolio beta?
A portfolio contains equal investments in 10 stocks. Five have a beta of 1.4; the remainder...
A portfolio exists that contains equal weights of Five securities: A stock with a beta of 1.5, B stock with a beta of 2.0, C stock with a beta of -0.8, Dis a US Treasury Bond, and E is a security that tracks the market exactly. What is the beta of this portfolio? What is the expected return of the A stock from the question assuming the Treasury Bond has a 1.72% yield and the expected return of the market...
1. A portfolio contains 3 stocks as outlined below. What is the beta of the portfolio? Stock Weight Beta A 70% 0.77 B 10% 1.17 C 20% 1.77 A. 1.24 B. 1.10 C. 1.07 D. 1.01 2. Two stocks have the following returns. What is their correlation? Year Stock A Stock B 2010 8.00% -8.00% 2011 9.00% -9.00% 2012 10.00% -10.00% 2013 12.00% -12.00% 2014 14.00% -14.00% 2015 16.00% -16.00% A. -1.00 B. 1.00 C. 0.00 D. -.23
What is the beta of an equally-weighted portfolio containing stocks with betas of 1.4, 0.9, and 1.7? Please show formula and written work (if possible), thank you!
You are forming an equally weighted portfolio of stocks. Many stocks have the same beta of 0.84 for Factor 1 and the same beta of 1.69 for Factor 2. All stocks also have the same expected return of 11 percent. Assume a two-factor model describes the return on each of these stocks. a) Write the equation of the returns on your portfolio if you place only five stocks in it. b) Write the equation of the returns on our portfolio...
Problem 3: You have a portfolio of 5 stocks with equal shares invested in each stock. Variances of individual stock are the same and equal to ơ2-16. Covariances between stocks 1, 2, and 5 are equal to 2. Stocks 3 and 4 are uncorrelated with each other and are uncorrelated with stocks 1,2 and 5. a) Find the variance of this portfolio using "box" method. Further assume that stocks 1, 2, and 5 have beta's of1.1 each and stocks 3...
You have a portfolio that has equal amounts invested in the following common stocks. What is the beta of the portfolio? Security Beta Bank of America 1.96 CA Technologies 1.44 Toyota Motor Corporation 0.75 International Business Machines 0.62 Options: 1.05, 1.00, 1.10, 1.19
Suppose that you have a portfolio worth $100,000 which contains only two stocks. If one stock is valued at $65,000 and has a beta of .70 while the other stock has a beta of 1.2, what is the portfolio beta? 0.865 0.980 0.875 0.765 0.838
7) Derek Jeter currently has an investment portfolio that contains four stocks with a total value equal to $80,000. The portfolio has a beta (B) equal to 1.4. Derek wants an additional $20,000 in a stock that has B-2.4. After Derek ad portfolio, what will be the portfolio's beta? to invest As the capital budgeting director for Fitzpatrick Coffins Company, you are evaluating construction of a new plant. The plant has a net cost of $5 million in Year O...
Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on the market is 10 percent and the risk-free rate is 5 percent, what is the risk premium associated with each stock?
You have a portfolio containing equal weights of four stocks which have betas of 1.72, 0.62, 1.08, and 0.79. You would like to add a fifth security such that your portfolio beta will be 1.25. Given this, the new security should have a beta of: 1.99 1.56 01.25 02.04