A stock has a beta of 1.65 and an expected return of 11 percent. A risk-free asset currently earns 2.6 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Expected return %b. If a portfolio of the two assets has a beta of .99, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 4 decimal places, e. g., 32.1616.)Weight of stock Risk-free weight c. If a portfolio of the two assets has an expected return of 10 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 3 decimal places, e. g., 32.161.) Beta d. If a portfolio of the two assets has a beta of 3.30, what are the portfolio weights? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a whole number.)Weight of stock Risk-free weight
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 12:50, DesperatforanA
Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise
Answers: 3
Business, 22.06.2019 20:40, MyaMya12
Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005
Answers: 1
Do you know the correct answer?
A stock has a beta of 1.65 and an expected return of 11 percent. A risk-free asset currently earns 2...
Questions in other subjects:
Mathematics, 15.01.2022 09:40
Computers and Technology, 15.01.2022 09:40
Mathematics, 15.01.2022 09:40
English, 15.01.2022 09:50
