Your portfolio has a beta equal to 1.7. It returned 11.5% last year. The market returned 9.9%; the risk-free rate is 4.9%. Calculate Treynor's measure for your portfolio and the market. Did you e...
The risk free rate is currently 7.6%. Use the data in the accompanying table for the Flo family's portfolio and the market portfolio during the year Just ended to answer the questions that follow (C Data Item Rate of return Standard deviation of return Beta Fios' Portfolio 12.7% 13.1% 1.37 Market Portfolio 9.2% 1.00 a. Calculate Sharpe's measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios' portfolio during the year just...
Your portfolio returned 14.1% last year, with a beta equal to 1.8. The market return was 11.0%, and the risk-free rate 5.1%. Did you earn more or less than the required rate of return on your portfolio? (Use Jensen's measure.) The Jensen's measure for your portfolio is 1% (Round to two decimal places.) You earned the required rate of return on your portfolio. (Select from the drop-down menu.)
P13.14 (similar to) Your portfolio returned 12 last year with a beta equal to 1 2. The market rebum was 0.0%, and the free rate 6 DM you can more or less than a roured rate of rum on your portfolio? Use Jensen'measure) The Jenser's measure for your portfolio is 0% (Round to two decimal places) Enter your ow n box and then chox Check 1 mg
1) A project has a market beta of 1.7. The risk-free rate is 3%, and the equity premium is 5%. Your firm should undertake this project only if it returns greater or equal to 8% greater or equal to 35% greater or equal to 8.3333% greater or equal to 11.5% 2) A zero-coupon bond has a beta of 0.3 and promises to pay $1000 next year with a probability of 95%. If the bond defaults, it will pay nothing. One...
Consider the following information: Portfolio Expected Return Beta Risk-free 7 % 0 Market 12.8 1.0 A 11.5 1.9 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.9. (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 situation above possible? Yes No
1) The beta of Elsenore, Inc., stock is 1.7, whereas the risk-free rate of return is 0.07. If the expected return on the market is 0.16 , then what should investors expect as a return on Elsenore? Round answer to 4 decimal places and represent percentage as decimal 2) You have invested 40 percent of your portfolio in an investment with an expected return of 12 percent and 60 percent of your portfolio in an investment with an expected return...
Problem 11-28 Question Help Suppose the risk-free return is 4.9% and the market portfolio has an expected return of 10.9% and a standard deviation of 16%. Loblaw Companies Limited stock has a beta of 0.29. What is its expected return? The expected return is %. (Enter your response as a percent rounded to two decimal places.)
the Lenzie Corporation’s common stock has a beta of 1.80. If the risk-free rate is 4.9% and the expected return on the market is 11%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital ____ %
Consider the following information: Portfolio Expected Return Beta Risk-free 8 % 0 Market 10.2 1.0 A 8.2 0.7 a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.) Expected return % b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha % c. If the simple CAPM is valid, is the above situation possible? Yes...
Consider the following information: Portfolio Expected Return Beta Risk-free 7 % 0 Market 12.2 1.0 A 11.0 1.6 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.6. (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.)