Homework Answers
Jensen's Alpha = E(r) - [Risk-free Rate + {Beta * (Market Return - Risk-free Rate)}]
= 12.7% - [6.5% + {1.2 * (9.8% - 6.5%)}]
= 12.7% - [6.5% + {1.2 * 3.3%}]
= 12.7% - [6.5% + 3.96%]
= 12.7% - 10.46% = 2.24%
So, you would earn more than the required rate of return on your portfolio.
Add Answer to:
P13.14 (similar to) Your portfolio returned 12 last year with a beta equal to 1 2....
Your portfolio returned 14.1% last year, with a beta equal to 1.8. The market return was...
Your portfolio returned 14.1% last year, with a beta equal to 1.8. The market return was 11.0%, and the risk-free rate 5.1%. Did you earn more or less than the required rate of return on your portfolio? (Use Jensen's measure.) The Jensen's measure for your portfolio is 1% (Round to two decimal places.) You earned the required rate of return on your portfolio. (Select from the drop-down menu.)
Your portfolio has a beta equal to 1.7. It returned 11.5% last year. The market returned 9.9%; the risk-free rate is 4.9%. Calculate Treynor's measure for your portfolio and the market. Did you e...
Your portfolio has a beta equal to 1.7. It returned 11.5% last year. The market returned 9.9%; the risk-free rate is 4.9%. Calculate Treynor's measure for your portfolio and the market. Did you earn a better return than the market given the risk you took? The Treynor's measure for your portfolio is (Round to two decimal places The Treynor's measure for the market is (Round to two decimal places.) Your portfolio's performance is (1) drop-down menu.) to the market's performance....
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta, c. Given...
Expected return of a portfolio using beta. The beta of four stocks—G, H, I, and J—are...
Expected return of a portfolio using beta. The beta of four stocks—G, H, I, and J—are 0.45, 0.79, 1.07, and 1.58, respectively and the beta of portfolio 1 is 0.97, the beta of portfolio 2 is 0.82, and the beta of portfolio 3 is 1.11. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.0% (nisk-free rate) and a market premium of 11.0%...
Kevin knows that the beta of his portfolio is equal to 1, but he does not...
Kevin knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk premium. He also knows that the expected return on the market is 8.25 percent. What is the expected return on Kevin’s portfolio? (Round answer to 2 decimal places, e.g. 12.25) expected return: %
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 percent. a. Calculate the expected return of your portfolio (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the foregoing information, plot the...
Problem 7.26 Anthony knows that the beta of his portfolio is equal to 1, but he...
Problem 7.26 Anthony knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk premium. He also knows that the expected return on the market is 7.50 percent. What is the expected return on Anthony's portfolio? (Round answer to 2 decimal places, e.g. 12.25) Expected return Olo Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT
Last year you invested in a stock with a beta equal to 0.76. The risk-free rate...
Last year you invested in a stock with a beta equal to 0.76. The risk-free rate was 0.016 and the expected return of the market was 0.19. After holding the stock for the year you find that the market did return what was expected. However, the stock you invested in returned 0.16. By how much did the stock over-perform (under-perform) for the year? Answer as a percentage to two decimals
all parts please 8 of 11 (2 complele HW OCCre Score: 0 of 1 pt EQu...
all parts please
8 of 11 (2 complele HW OCCre Score: 0 of 1 pt EQu P13.15 (similar to) The return on the market portfolio during the year just ended was 10.8 % Chee Chew's portfolio has a beta of 1.22 and eamed a rehum of 13.2 % during the year just ended. The risk free rate is currently 4.7 % a. Caloulate Jensen's measure (Jensen's alpha) for Chee's portolio for the year just ended b. Compare the performance of...
Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of...
Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 0.75. The risk-free rate is 4.00%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate...
Your portfolio returned 14.1% last year, with a beta equal to 1.8. The market return was 11.0%, and the risk-free rate 5.1%. Did you earn more or less than the required rate of return on your portfolio? (Use Jensen's measure.) The Jensen's measure for your portfolio is 1% (Round to two decimal places.) You earned the required rate of return on your portfolio. (Select from the drop-down menu.)
Your portfolio has a beta equal to 1.7. It returned 11.5% last year. The market returned 9.9%; the risk-free rate is 4.9%. Calculate Treynor's measure for your portfolio and the market. Did you earn a better return than the market given the risk you took? The Treynor's measure for your portfolio is (Round to two decimal places The Treynor's measure for the market is (Round to two decimal places.) Your portfolio's performance is (1) drop-down menu.) to the market's performance....
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta, c. Given...
Expected return of a portfolio using beta. The beta of four stocks—G, H, I, and J—are 0.45, 0.79, 1.07, and 1.58, respectively and the beta of portfolio 1 is 0.97, the beta of portfolio 2 is 0.82, and the beta of portfolio 3 is 1.11. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.0% (nisk-free rate) and a market premium of 11.0%...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 percent. a. Calculate the expected return of your portfolio (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the foregoing information, plot the...
Problem 7.26 Anthony knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk premium. He also knows that the expected return on the market is 7.50 percent. What is the expected return on Anthony's portfolio? (Round answer to 2 decimal places, e.g. 12.25) Expected return Olo Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT
all parts please
8 of 11 (2 complele HW OCCre Score: 0 of 1 pt EQu P13.15 (similar to) The return on the market portfolio during the year just ended was 10.8 % Chee Chew's portfolio has a beta of 1.22 and eamed a rehum of 13.2 % during the year just ended. The risk free rate is currently 4.7 % a. Caloulate Jensen's measure (Jensen's alpha) for Chee's portolio for the year just ended b. Compare the performance of...
Most questions answered within 3 hours.
-
QUESTION ONE: For the following reaction, 13.4 grams of chlorine
gas are allowed to react with...
asked 2 minutes ago -
An
Atwood's machine has one block of m1 = 0.370 kg and the other is of...
asked 4 minutes ago -
Why is Kevlar a stronger fabric then dacron? Provide two reasons
involving structures.
asked 18 minutes ago -
Suppose you have a checkers board. (8 squares wide and 8
squares long) and you
have...
asked 38 minutes ago -
Given the following function: QD = 200 - 5.25P
7.1 Derive the Regular Demand Function
7.2...
asked 33 minutes ago -
The following results were obtained as
part of a multiple regression analysis involving 3 independent
variables:...
asked 1 hour ago -
The time to complete a standardized exam is approximately normal
with a mean of 70 minutes...
asked 3 hours ago -
Two thousand randomly selected adults were asked whether or not
they have ever shopped on the...
asked 3 hours ago -
Estimate the diffusion coefficient for methyl phenyl sulfide in
water at 25 degrees Celcius.
asked 2 hours ago -
10.g of a certain metal absorb 40. cal of heat and the temperature
is abserved to...
asked 3 hours ago -
How many milliliters of 0.0695 M Ca( OH)
2would be required to exactly neutralize 176 mL...
asked 4 hours ago -
A telephone survey uses a random digit dialing machine to call
subjects. The random digit dialing...
asked 4 hours ago