ZuoTi.Pro
Question

The betas of four stocks – G, H, I, and J – are .45, 0.8, 1.15,...

The betas of four stocks – G, H, I, and J – are .45, 0.8, 1.15, and 1.6 respectively. What is the beta of a portfolio with the following weights in each asset?

Weight in Stock G

Weight in Stock H

Weight in Stock I

Weight in Stock J

Portfolio 1

25%

25%

25%

25%

Portfolio 2

30%

40%

20%

10%

Portfolio 3

10%

20%

40%

30%

Use the four assets from the previous problem in the same three portfolios. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotting with an intercept of 4% (risk-free rate) and a market premium of 10% (slope of the line)?

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

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS ASKED FOR PORTFOLIO BETA, IT IS CALCULATED

ke Microsoft Excel Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Edting AF205 AB AD AE AG 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 4KE CAPM UTILITY, SHARPE, beta bond c PORTFOLIO 1 STOCK ALLOCATION BETA WEIGHTED BETA (ALLOCATION X BETA) 25% 25% 25% 25% 0.1125 0.45 0.8 1.15 0.2875 ORTFOLIO BETA PORTFOLIO 2 STOCK ALLOCATION BETA WEIGHTED BETA 0.45 0.8 1.15 1.6 0.135 0.32 0.23 0.16 0.85 0% 10% ORTFOLIO BETA PORTFOLIO 3 STOCK ALLOCATION BETA WEIGHTED BETA 10% 0% 0.45 0.8 1.15 0.045 0.16 0.46 0.48 PORTFOLIO BETA M port future INDEX INTL CAP BUD LEASING PV. FV, ANNUITY DIR nghtcleanYIELD bond stru WACC RES1 ex di 福 12096 04:52 24-11-2018

0 0
Add a comment
Know the answer?
Add Answer to:
The betas of four stocks – G, H, I, and J – are .45, 0.8, 1.15,...
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

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.43, 0.86, 1.15,...

    Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.43, 0.86, 1.15, and 1.55, respectively. What is the beta of a portfolio with the following weights in each asset? Weight in Stock J 25% 10% 30% Weight in Stock H Weight in Stock I 25% 20% 40% Weight in Stock G 25% 30% 10% 25% 40% 20% Portfolio1 Portfolio 2 Portfolio 3 What is the beta of portfolio 1? (Round to two decimal places)

  • Beta of a portfolio. the beta of four stocks---- G, H ,I ,J---- are 0.41, 0.74,...

    Beta of a portfolio. the beta of four stocks---- G, H ,I ,J---- are 0.41, 0.74, 1.14, and 1.59, respectively. what is the beta of a portfolio with the following weights in each asset?                     weight G. weight H.   weight I.   weight J portfolio 1.      25%        25%            25%           25% portfolio 2.      30%        40%            20%           20% portfolio 3.     10%         20%            40%           30% what is the beta of all portfolios?

  • Expected return of a portfolio using beta. The beta of four stocks-G, H, I, and J...

    Expected return of a portfolio using beta. The beta of four stocks-G, H, I, and J are 0.44, 0.78, 1.11, and 1.67, respectively and the beta of portfolio 1 is 1.00, the beta of portfolio 2 is 0.83, and the beta of portfolio 3 is 1.15. 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% (risk-free rate) and a market premium of...

  • 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 0.47,0.86, 1.08, and 1.56, respectively and the beta of portfolio 1 is 0.99, the beta of portfolio 2 is 0.86, and the beta of portfolio 3 is 1.12. 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 4.5 % Trisk-froe rate ) and a market premium of...

  • Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.49, 0.78, 1.16,...

    Beta of a portfolio. The beta of four stocks-G, H, I, and J-are 0.49, 0.78, 1.16, and 1.51, respectivelly. What is the beta of a portfolio with the following weights in each asset:? What is the beta of portfolio 1? (Round to two decimal places.) - X i Data Table in order to copy its contents into a spreadsheet.) (Click on the following icon Weight in Stock H Weight in Stock G Weight in Stock Weight in Stock J Portfolio...

  • 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 0.44, 0.75, 1.18, and 1.58​, respectively and the beta of portfolio 1 is 0.99​, the beta of portfolio 2 is 0.83, and the beta of portfolio 3 is 1.14. 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​% ​(risk-free rate) and a market premium of 10.0​%...

  • 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%...

  • Question Help Beta of a portfolio. The beta of tour stocks-G, H, I, and J-are 042,0.75,...

    Question Help Beta of a portfolio. The beta of tour stocks-G, H, I, and J-are 042,0.75, 1.09, and 1.58, respectively. What is the beta of a portolio with the following weights in each asset? Portfolio 1 Portlolio 2 Portfolio 3 Weight in Stock G 25% Welght in Stock H 25% 40% Weight in Stock I 25% 20% 40% Weight in Stock J 25% 10% 30% 120% 10% What is the beta of portfolio 1? (Round to two decimal places.) 1961...

  • Beta of a portfolio. The beta of four stocks—​P, ​Q, R, and—are 0.58​, 0.71​, 1.08​, and...

    Beta of a portfolio. The beta of four stocks—​P, ​Q, R, and—are 0.58​, 0.71​, 1.08​, and 1.47​, respectively. What is the beta of a portfolio with the following weights in each​ asset:    Weight in Stock P   Weight in Stock Q   Weight in Stock R   Weight in Stock S Portfolio 1   25%   25%   25%   25% Portfolio 2   30%   40%   20%   10% Portfolio 3   10%   20%   40%   30% What is the beta of portfolio​ 1? round to two decimal places

  • IG6 P5.29 You have three portfolios containing four assets each. The following table specifies the weights...

    IG6 P5.29 You have three portfolios containing four assets each. The following table specifies the weights assigned to each asset in each of the three portfolios, along with each asset's beta: Asset Asset Beta 1.5 Portfolio A 30% Portfolio Weights Portfolio B 5% bobobsle B 0 . C lib pob D 1.8 0.30 -0.40 40% 20% 10% 100% 15% 30% 50% 100% Portfolio C 35% 5% 40% 20% 100% n old a. Calculate the betas for the three portfolios. b....

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