A stock has a beta of 1.08 and has expected rate of return of 11.6 percent. A risk-free asset currently earns 3.6 percent. If a portfolio of the two assets has a beta of 2.16, what are the portfolio weights?
A) 1.50; -0.50
B) 0.82; 0.18
C) 0.65; 0.35
D) 2.00; -1.00
A stock has a beta of 1.08 and has expected rate of return of 11.6 percent. A risk-free asset currently earns 3.6 percent. What is the expected rate of return on a portfolio that is equally invested in the two assets?
A) 8.0%
B) 7.5%
C) 15.2%
D) 7.6%
A stock has a beta of 1.08 and has expected rate of return of
11.6 percent. A risk-free asset currently earns 3.6 percent. If a
portfolio of the two assets has an expected return of 10.5 percent,
what is the beta?
A) 0.90
B) 0.93
C) 0.98
D) 0.89
A stock has a beta of 1.08 and has expected rate of return of 11.6 percent. A risk-free asset currently earns 3.6 percent. If a portfolio of the two assets has a beta of 0.50, what are the portfolio weights?
A) 0.46; 0.54
B) 0.63; 0.37
C) 0.57; 0.43
D) None of these
1)
Weight of stock:
= Beta of portfolio/Beta of stock
= 2.16/1.08
= 2.00
Hence, correct option is D) 2.00; -1.00
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A stock has a beta of 1.08 and has expected rate of return of 11.6 percent....
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