16. Portfolio A,B’s beta is closest to:
a. 0.80 b. 0.92 c. 1.00 d. 1.08 e. 1.20
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16. Portfolio A,B’s beta is closest to: a. 0.80 b. 0.92 c. 1.00 d. 1.08 e....
18. Assuming the correlation of stock A & B is zero (which your book assumes for...
18. Assuming the correlation of stock A & B is zero (which
your book assumes for all securities), Portfolio A,B’s total risk
is closest to:
9.4%
10.2%
11.1%
12.8%
13.2%
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in...
17. If you doubled the size of your investment today (T=0), your total dollar return would...
17. If you doubled the size of your investment today (T=0), your
total dollar return would be closest to:
a. $66 b. $92 c. $184 d. $264 e. $280
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Market Stock A Stock B Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40 0.60 Market Stock A 400...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (TO), you...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (TO), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions Investment Total ReturnTotal Risk Beta .000 I .40 0.60 Market 12.0% 18.0% 10.0% 15.8)% 12.0% Stock B $ 600 20....
5. Suppose risk-free rate of return = 2%, market return = 7%, and Stock B's return = 11%. a. Calcuate Stock B’s beta. b...
5. Suppose risk-free rate of return = 2%, market return = 7%, and Stock B's return = 11%. a. Calcuate Stock B’s beta. b. If Stock B’s beta were 0.80, what would be its new rate of return?
You hold the following portfolio: Stock Investment Beta $150.000 1.40 $50,000 0.80 $100,000 1.00 1.20 $75,000...
You hold the following portfolio: Stock Investment Beta $150.000 1.40 $50,000 0.80 $100,000 1.00 1.20 $75,000 $375,000 Total You plan to sell Stock A and replace it with Stock E, which has a beta of 0.80. By how much will the portfolio beta change? Do not round your intermediate calculations. a.-0.194 b. -0.271 OC -0.240 d. -0.290 e-0.230
Paul McLaren holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C...
Paul McLaren holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 Paul plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change? a. −0.260 b. −0.286 c. −0.190 d. −0.211 e. −0.234
21. Which of the following statements is most likely FALSE: The SP500 index has a higher...
21. Which of the following statements is most likely FALSE:
The SP500 index has a higher beta than Stock B
The SP500 index has a higher beta than Stock A
Stock A has a higher beta than Stock B
Stock A index has a beta of 0.80
The SP500 index has a beta of 1.20
22. Over the past six years, which of the following statements
is most likely TRUE:
The SP500 index has the highest arithmetic average return, but...
18. Assuming the correlation of stock A & B is zero (which
your book assumes for all securities), Portfolio A,B’s total risk
is closest to:
9.4%
10.2%
11.1%
12.8%
13.2%
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in...
17. If you doubled the size of your investment today (T=0), your
total dollar return would be closest to:
a. $66 b. $92 c. $184 d. $264 e. $280
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Market Stock A Stock B Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (T-0), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions 16-20 Investment Total Return 12.0% 18.0% 10.0% Total Risk 14.0% 15.0% 12.0% Beta 1.00 1.40 0.60 Market Stock A 400...
Assume the risk free rate is 2.0%. The SP500 is considered the market. Today (TO), you invest $400 in Stock A and $600 in Stock B to create Portfolio A,B. Assume there are not taxes or dividends. The one year performance of the stocks and the market is summarized in the table below. Use this information to help answer questions Investment Total ReturnTotal Risk Beta .000 I .40 0.60 Market 12.0% 18.0% 10.0% 15.8)% 12.0% Stock B $ 600 20....
5. Suppose risk-free rate of return = 2%, market return = 7%, and Stock B's return = 11%. a. Calcuate Stock B’s beta. b. If Stock B’s beta were 0.80, what would be its new rate of return?
You hold the following portfolio: Stock Investment Beta $150.000 1.40 $50,000 0.80 $100,000 1.00 1.20 $75,000 $375,000 Total You plan to sell Stock A and replace it with Stock E, which has a beta of 0.80. By how much will the portfolio beta change? Do not round your intermediate calculations. a.-0.194 b. -0.271 OC -0.240 d. -0.290 e-0.230
21. Which of the following statements is most likely FALSE:
The SP500 index has a higher beta than Stock B
The SP500 index has a higher beta than Stock A
Stock A has a higher beta than Stock B
Stock A index has a beta of 0.80
The SP500 index has a beta of 1.20
22. Over the past six years, which of the following statements
is most likely TRUE:
The SP500 index has the highest arithmetic average return, but...
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