Question

need 16,17 and 18

Remaining Time: 43 minutes, 45 seconds , Question Completion Status QUESTION 16 The following information is for the next three questions. Investor P has the following portfolio: Amount 10,000 30,000 20,000 40,000 Return 10% 12% 1596 206 Beta 1.2 0.8 1.4 2.0 Stock What are the weights of these four stocks in the portfolid? w1 2096, wrze 30% w,3°20% w4" 1096 wn 1096, wv2" 40% w/3-20% vv4 10% wi 1096, w2° 30% w3-20% w4° 40% 贏B. QUESTION 17 What is the expected return of the portfolio? 15.60

Answer 1

Q16.

W₁ = 10,000/100,000 = 10%

W₂ = 30,000/100,000 = 30%

W₃ = 20,000/100,000 = 20%

W₄ = 40,000/100,000 = 40%

Option C is correct.

Q17.

Expected Return of Portfolio = 0.10(0.10) + 0.30(0.12) + 0.20(0.15) + 0.40(0.20)

Expected Return of Portfolio =15.6%

Option A is correct

Q18.

Beta of Portfolio = 0.10(1.2) + 0.30(0.8) + 0.20(1.4) + 0.40(2)

Beta of Portfolio = 1.44

Option E is correct.