8.14Homework Answers
Current Portfolio Beta = 1.02
Weight of each stock in portfolio = 1/20 = 0.05
Beta of sell stock = 1.0
Beta of New stock = 1.48
Thus,
New Portfolio Beta would be:
Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
Add Answer to:
8.14
MAIN MENU Risk and Rates of Return 1 My Home < Back to Assignment 9...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk and Rates of Return:...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk
and Rates of Return: Risk in Portfolio Context The capital asset
pricing model (CAPM) explains how risk should be considered when
stocks and other assets are held . The CAPM states that any stock's
required rate of return is the risk-free rate of return plus a risk
premium that reflects only the risk remaining diversification. Most
individuals hold stocks in portfolios. The risk of a stock held in...
h 08: Assignment - Risk and Rates of Return Emma holds a $5,000 portfolio that consists...
h 08: Assignment - Risk and Rates of Return Emma holds a $5,000 portfolio that consists of four stocks. Her investment in stock's beta, is listed in the following table: Stand Stock / Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TL) Three Waters Co. (TWC) Makissi Corp. (MC) Investment $1,750 $1,000 $750 $1,500 Beta 0.90 1.90 1.20 0.40 Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Aa...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Aa Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.90 1.30 1.15 0.40 Standard Deviation 12.00% 11.50% 18.00% 19.50% Suppose all stocks in...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Elle...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Elle holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.90 1.30 Standard Deviation 9.00% 11.00% 18.00% 1.10 0.30 19.50% Suppose all stocks in Elle's...
Ch 08: Assignment - Risk and Rates of Return Attempts: Average: 73 8. Portfolio risk and...
Ch 08: Assignment - Risk and Rates of Return Attempts: Average: 73 8. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Beta Standard Deviation Investment $2,625 0.90 12.00% $1,500 Andalusian Limited (AL) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) 1.90 1.20 12.00% 18.00% $1,125 $2,250 0.40 28.50% Suppose all stocks...
help Ch 08: Assignment - Risk and Rates or Return < Back to Assignment Attempts: ....
help
Ch 08: Assignment - Risk and Rates or Return < Back to Assignment Attempts: . Keep the Highest: 72 1. Statistical measures of standalone risk Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its...
help pleaae Ch 08: Assignment - Risk and Rates of Return Search this course 6. Portfolio...
help
pleaae
Ch 08: Assignment - Risk and Rates of Return Search this course 6. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his dients holds a $10,000 portfolio that consists of four stocks. The investment location in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Standard Deviation Atteric Inc. (AT) Investment Allocation 35% 20% Beta 0.750 1.500 57.00 Arthur Trust Inc(AT) Lobster...
Ch 08: End-of-Chapter Problems - Risk and Rates of Return a. Calculate each stock's coeffident of...
Ch 08: End-of-Chapter Problems - Risk and Rates of Return a. Calculate each stock's coeffident of variation. Round your answers to twe decimal places. Do not round intermediate calculations. CV.- b. Which stock is riskier for a diversified investor? I. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X. II. For diversified investors the relevant...
Dropdown options: 1-risk/return 2-equal to/greater or less than 3-self contained/stand-alone 4-variance/standard deviation 5-variance/beta coefficient 6-diversifiable/non-diversiable 7-is/...
Dropdown options:
1-risk/return
2-equal to/greater or less than
3-self contained/stand-alone
4-variance/standard deviation
5-variance/beta coefficient
6-diversifiable/non-diversiable
7-is/ is not
8-diversifiable/non-diversifiable
9-random/non random
10-decreasing/increasing
11-2000+/500
12-reduces/increases
13-systematic of market/unsystematic or company-specific
14-diversifiable/non diversifiable
1. Basic concepts - Risk and return Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in North Carolina after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students,...
2. 3: Risk and Rates of Return: Risk in Portfolio Context Risk
and Rates of Return: Risk in Portfolio Context The capital asset
pricing model (CAPM) explains how risk should be considered when
stocks and other assets are held . The CAPM states that any stock's
required rate of return is the risk-free rate of return plus a risk
premium that reflects only the risk remaining diversification. Most
individuals hold stocks in portfolios. The risk of a stock held in...
h 08: Assignment - Risk and Rates of Return Emma holds a $5,000 portfolio that consists of four stocks. Her investment in stock's beta, is listed in the following table: Stand Stock / Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TL) Three Waters Co. (TWC) Makissi Corp. (MC) Investment $1,750 $1,000 $750 $1,500 Beta 0.90 1.90 1.20 0.40 Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Aa Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.90 1.30 1.15 0.40 Standard Deviation 12.00% 11.50% 18.00% 19.50% Suppose all stocks in...
Assignment 08 - Risk and Rates of Return 5. Portfolio risk and return Aa Aa Elle holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.90 1.30 Standard Deviation 9.00% 11.00% 18.00% 1.10 0.30 19.50% Suppose all stocks in Elle's...
Ch 08: Assignment - Risk and Rates of Return Attempts: Average: 73 8. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Beta Standard Deviation Investment $2,625 0.90 12.00% $1,500 Andalusian Limited (AL) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) 1.90 1.20 12.00% 18.00% $1,125 $2,250 0.40 28.50% Suppose all stocks...
help
Ch 08: Assignment - Risk and Rates or Return < Back to Assignment Attempts: . Keep the Highest: 72 1. Statistical measures of standalone risk Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its...
help
pleaae
Ch 08: Assignment - Risk and Rates of Return Search this course 6. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his dients holds a $10,000 portfolio that consists of four stocks. The investment location in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Standard Deviation Atteric Inc. (AT) Investment Allocation 35% 20% Beta 0.750 1.500 57.00 Arthur Trust Inc(AT) Lobster...
Ch 08: End-of-Chapter Problems - Risk and Rates of Return a. Calculate each stock's coeffident of variation. Round your answers to twe decimal places. Do not round intermediate calculations. CV.- b. Which stock is riskier for a diversified investor? I. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X. II. For diversified investors the relevant...
Dropdown options:
1-risk/return
2-equal to/greater or less than
3-self contained/stand-alone
4-variance/standard deviation
5-variance/beta coefficient
6-diversifiable/non-diversiable
7-is/ is not
8-diversifiable/non-diversifiable
9-random/non random
10-decreasing/increasing
11-2000+/500
12-reduces/increases
13-systematic of market/unsystematic or company-specific
14-diversifiable/non diversifiable
1. Basic concepts - Risk and return Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in North Carolina after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students,...
Most questions answered within 3 hours.
-
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 53 minutes ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 55 minutes ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 1 hour ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 2 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 2 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 3 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 3 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 3 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 3 hours ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 3 hours ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 3 hours ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 3 hours ago