ZuoTi.Pro
Question

Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the...

Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the expected return of your portfolio, if PG's beta is 0.8, HD's beta is 0.3, the risk free rate is 3.8% and the market's expected return is 10.8%? Assume that the CAPM holds.

NFLX's standard deviation is 28% and the market's standard deviation is 25%. The correlation between the returns of NFLX and the market is -0.67. What percent of NFLX's variance is systematic? Provide your answer in percent, rounded to two decimals, omitting the % sign.

Based on the CAPM, what is the expected return to a stock with a beta of 0.7? Risk free T-Bills earn a 2% return and the market's expected return is 12.6%. Provide your answer in percent, rounded to two decimals, omitting the % sign.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Mary's risk aversion is 2.1. What percent of her savings should she invest in a portfolio with E(r)=18% and standard...

    Mary's risk aversion is 2.1. What percent of her savings should she invest in a portfolio with E(r)=18% and standard deviation of 20%, if the risk free rate to invest in is 3.7% and the rate at which money can be borrowed is 5%? Provide your answer in percent, rounded to two decimals, omitting the % sign.

  • Suppose that your portfolio consists of 20% of XYZ stock and 80% of CCC stock. XYZ...

    Suppose that your portfolio consists of 20% of XYZ stock and 80% of CCC stock. XYZ has a beta of 1.5 and CCC has a beta of 1.3. What is the expected return of this portfolio according to the CAPM. Assume that the expected return on the market portfolio is 12% and the risk-free rate is 5% Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.

  • Given a market portfolio with an expected return of 10% and standard deviation of 20% and...

    Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, A. According to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? B. What is the beta of the market portfolio? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.

  • 1. Given a market portfolio with an expected return of 10% and standard deviation of 20%...

    1. Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, according to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals. 2.  What is the corresponding beta of the market portfolio?

  • Consider the following information: Portfolio Expected Return Beta Risk-free 10 % 0 Market 10.8 % 1.0...

    Consider the following information: Portfolio Expected Return Beta Risk-free 10 % 0 Market 10.8 % 1.0 A 8.8 & 0.6 a. Calculate the expected return of portfolio A with a beta of 0.6. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) c. If the simple CAPM is valid, is the above situation possible? y/n

  • Given a market portfolio with an expected return of 10% and standard deviation of 20% and...

    Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, according to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.

  • Lucas builds a portfolio by investing in two stocks only: Google (GOOG) and Motorola (MSI). According...

    Lucas builds a portfolio by investing in two stocks only: Google (GOOG) and Motorola (MSI). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of GOOG is 10.48% and the expected risk premium of MSI is 6.46%. The beta of GOOG is equal to 1.42. If Lucas puts 68% of his money in GOOG stock and 32% in MSI stock, what is the approximate beta of his portfolio? Bp = Number (Please round...

  • Lucas builds a portfolio by investing in two stocks only: Google (GOOG) and Motorola (MSI). According...

    Lucas builds a portfolio by investing in two stocks only: Google (GOOG) and Motorola (MSI). According to the CAPM, the expected risk premium (.e., the expected return minus the risk free rate) of GOOG is 10.19% and the expected risk premium of MSI is 5.25%. The beta of GOOG is equal to 1.43. If Lucas puts 70% of his money in GOOG stock and 30% in MSI stook, what is the approximate beta of his portfolio? Bp = Number (Please...

  • You have been provided the following data on the securities of three firms, the market portfolio,...

    You have been provided the following data on the securities of three firms, the market portfolio, and the risk-free asset: a. Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Security Expected Return Standard Deviation Correlation* Beta Firm A .101 .40 .76 Firm B .149 .59 1.31 Firm C .169 .56 .44 The market...

  • Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent...

    Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are . 78, 87, 1.13, and 1.45, respectively. What is the portfolio beta? Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.29 and the total portfolio is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT