1.
Bart:
w*7.1%+(1-w)*14.9%=14%
=>w=(14%-14.9%)/(7.1%-14.9%)
11.53846% in bonds and 88.46154% in stocks
Beta=11.53846%*0.7+88.46154%*1.4=1.31923078
2.
Lisa:
w*7.1%+(1-w)*14.9%=12%
=>w=(12%-14.9%)/(7.1%-14.9%)
37.17949% in bonds and 62.82051% in stocks
Beta=37.17949%*0.7+62.82051%*1.4=1.13974357
3.
Maggie:
w*7.1%+(1-w)*14.9%=10%
=>w=(10%-14.9%)/(7.1%-14.9%)
62.82051% in bonds and 37.17949% in stocks
Beta=62.82051%*0.7+37.17949%*1.4=0.96025643
Please answer all questions listed vuoi 0:00 20 5 of 8 (2 complete) HW Score: 28.75%,...
Different investor weights. Two risky portfolios exist for investing: one is a bond portfolio with a beta of 0.7 and an expected return of 6.5%, and the other is an equity portfolio with a beta of 1.4 and an expected return of 16.6%. If these portfolios are the only two available assets for investing, what combination of these two assets will give the following investors their desired level of expected return? What is the beta of each investor's combined bond...
Different investor weights. Two risky portfolios exist for investing: one is a bond portfolio with a beta of 0.7 and an expected return of 6.5 % , and the other is an equity portfolio with a beta of 1.4 and an expected return of 16.6 % If these portfolios are the only two available assets for investing, what combination of these two assets will give the following investors their desired level of expected return? What is the beta of each...
3 Different investor weights. Two risky portfolios exist for investing: one is a bond th a beta of 0.5 and an expected return of 8%, and the other portfolio wi uity portfolio with a beta of 1.2 and an expected return of 15%. If these portfolios are the only two available assets for investing, what combination of these two as- sets will give the following investors their desired level of expected return? What are the betas of each investor's combination...
Please answer and
walk me through all of the questions.
1. You are considering investing in a single stock that has a 50% chance of producing a 20% return. a 25% chance of producing an 8% return, and a 25% chance of producing a-12% return, what is its expected return? Expected r Consider the range of the possible returns for this stock and draw a picture of the dispersion of possible returns. 2. Expected Return on a Portfolio Stock Wtd...
all parts please
8 of 11 (2 complele HW OCCre Score: 0 of 1 pt EQu P13.15 (similar to) The return on the market portfolio during the year just ended was 10.8 % Chee Chew's portfolio has a beta of 1.22 and eamed a rehum of 13.2 % during the year just ended. The risk free rate is currently 4.7 % a. Caloulate Jensen's measure (Jensen's alpha) for Chee's portolio for the year just ended b. Compare the performance of...
Please answer all of questions A,B,C,D
Score: 1.25 of 15 pts 1 of 6 (2 complete) P8-21 (similar to) Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with 9% in asset J, 54% in asset K, and 37% in asset L? d. What is the...
Please show all the works and answer all the numbers accordingly
(like the way the question is aking ). Thanks
Check my work Suppose there are two independent economic factors, M, and M2. The risk-free rate is 4%, and all stocks have independent firm-specific components with a standard deviation of 53%. Portfolios A and B are both well diversified. Portfolio Expected Return (%) points Beta on MiBeta on M2 1.7 1.9 1.8 -0.7 B eBook Print What is the expected...
Please show the steps to get
the right answers. Thank you!
Show all attempts Jar Jar forms an aggressive growth portfolio by investing 20% of his savings in Ford stock, 23% in Toyota stock, 24% in Kia stock, 10% in an index fund, and the last 23% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1, whereas the bond fund is...
Section B: Short Answer Questions 1. Discuss why common stocks must earn a risk premium. 2. Discuss how the investor can use the separation theorem and utility theory to produce an efficient portfolio suitable for the investor's level of risk tolerance. 3. Two risky assets with returns ri, r, and standard deviations 01, 02, and correlation p. Calculate the weights for the following two optimal portfolios. a. Minimum volatility (variance) portfolio minimizes the overall risk min 0, s.t. W, +...
I'm stuck on some HW problems, Can someone please answer the
following questions? It is a multi-part question. Please hurry up
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Which of the following statements about bonds is TRUE? . A. If a $1,000 bond with an annual coupon of $100 is selling at a discount, its YTM is greater than 10%. • B. If nothing else changes, a discount bond's price will tend to decrease...