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A stock has a beta of 1.35 and an expected return...

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A stock has a beta of 1.35 and an expected return of 16 percent. A risk-free asset currently earns 4.8 percent. Required: (a) The expected return on a portfolio that is equally invested in the two assets is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16.)) (b) If a portfolio of the two assets has a beta of .95, the weight of the stock is percent and the weight of the risk-free is percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16.)) (c) If a portfolio of the two assets has an expected return of 8 percent, its beta is. (Round your answer to 3 decimal places. (e.g., 32.161)) (d) If a portfolio of the two assets has a beta of 2.70, the weight of the stock is percent and the weight of the risk-free is percent

 

Paper#10062 | Written in 18-Jul-2015

Price : $25
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