17. If you doubled the size of your investment today (T=0), your total dollar return would be closest to:
a. $66 b. $92 c. $184 d. $264 e. $280
Homework Answers
Answer:
16) option B:0.92
Stock A investment A=$400
Stock B investment B=$600
Beta of Stock A Ba=1.4
Beta of Stock B Bb=0.60
Portfolio Beta = A/(A+B)*Ba+ B/(A+B)*Bb=0.4*1.4+0.6*0.60=0.92
17) Option D:$264
Since investment is doubled
so new investment in A=$800
Return from A=800*% return =800*18%=$144
New investment in B=$1200
Return from B=1200*% return =1200*10%=$120
total return=144+120=$264
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