How do you find the portfolio beta? The answer is stated below at .84, but I can't seem to get that answer. Please show the work.
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How do you find the portfolio beta? The answer
is stated below at .84, but I...
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest...
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest and borrow at a risk-free rate of 3%, using T-bills. a. Draw the Capital Allocation Line (CAL) for this combination of risky portfolio and risk-free asset. What is the Sharpe ratio of the risky portfolio? b. Your client chooses to invest 50% of their funds into your risky portfolio and 50% risk-free. What is the expected return and...
You have $134,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free...
You have $134,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 13 percent and that has only 72 percent of the risk of the overall market. If X has an expected return of 32 percent and a beta of 1.6, Y has an expected return of 20 percent and a beta of 1.2, and...
Problem 16 how do you find the standard deviation? How do you do problems 17 and...
Problem 16 how do you find the standard deviation? How
do you do problems 17 and 18?
Use the following information to answer questions 25 through 27. ReturnStandard Risk Free Risky Asset 14% 12.6% Deviation 10% 24.3% 16, What is the return and standard deviation of a portfolio with 30% in the risk free asset 17, What is the return and standard deviation of a portfolio with 60% in the risk free asset 18, what is the return and standard...
You want to invest $40,000 in a portfolio with a beta of no more than 1.37...
You want to invest $40,000 in a portfolio with a beta of no more than 1.37 and an expected return of 12.1%. Bay Corp. has a beta of 1.03 and an expected return of 10.1%, and City Inc. has a beta of 1.82 and an expected return of 14.77%. The risk-free rate is 4%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? (Select from the...
Suppose that you have a risky asset that provides you with an expected return of 12%...
Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a risk-free asset that provides you with a 3% risk-free return. a. If you have $100,000 and invest 80% into the risky asset and 20% into the 6. b. How much will your portfolio be worth if the realized return on the risky c. If you cannot borrow money, what is the maximum possible expected return...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 126 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places leg.32.16).) Beta: QUESTION 18 A stock has a beta of o92, the expected return on the market is 103 percent, and the risk-free rate is...
You have $100,000 that you want to invest in a risky asset portfolio; M. Portfolio M...
You have $100,000 that you want to invest in a risky asset portfolio; M. Portfolio M has an expected return of 20% and a standard deviation of 30%. You also want to borrow an extra $50,000 at a risk-free rate of 8% and invest in the risky portfolio. Calculate the expected return and standard deviation of this portfolio. What type of portfolio is this and what type of investors will invest in this portfolio?
Problem 2 (15 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed...
Problem 2 (15 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky portfolio with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 5%. a) what percentage of your complete portfolio should be invested in the risky portfolio il you want your complete portfolio to have a standard deviation of 9%? b) The slope of the capital allocation line...
You have $10,000 to invest in a portfolio containing Stock R, Stock S, and a risk-free...
You have $10,000 to invest in a portfolio containing Stock R, Stock S, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15% and that has only 120% of the risk of the overall market. If Stock R has an expected return of 25% and a beta of 1.6, Stock S has an expected return of 17.5% and a beta of 1.3, and the risk-free...
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and...
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit
Problem 16 how do you find the standard deviation? How
do you do problems 17 and 18?
Use the following information to answer questions 25 through 27. ReturnStandard Risk Free Risky Asset 14% 12.6% Deviation 10% 24.3% 16, What is the return and standard deviation of a portfolio with 30% in the risk free asset 17, What is the return and standard deviation of a portfolio with 60% in the risk free asset 18, what is the return and standard...
You want to invest $40,000 in a portfolio with a beta of no more than 1.37 and an expected return of 12.1%. Bay Corp. has a beta of 1.03 and an expected return of 10.1%, and City Inc. has a beta of 1.82 and an expected return of 14.77%. The risk-free rate is 4%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? (Select from the...
Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a risk-free asset that provides you with a 3% risk-free return. a. If you have $100,000 and invest 80% into the risky asset and 20% into the 6. b. How much will your portfolio be worth if the realized return on the risky c. If you cannot borrow money, what is the maximum possible expected return...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 126 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places leg.32.16).) Beta: QUESTION 18 A stock has a beta of o92, the expected return on the market is 103 percent, and the risk-free rate is...
Problem 2 (15 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky portfolio with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 5%. a) what percentage of your complete portfolio should be invested in the risky portfolio il you want your complete portfolio to have a standard deviation of 9%? b) The slope of the capital allocation line...
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit
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