# Question

Referring to Problem, using the portfolio beta, what would you expect the value of your portfolio to be if the market rallied 20%? Declined 20%?

In problem assume you have a portfolio with $20,000 invested in each of investments A, B, and C. What is your portfolio beta?

Security Beta

A .......... 1.4

B .......... 0.8

C .......... -0.9

In problem assume you have a portfolio with $20,000 invested in each of investments A, B, and C. What is your portfolio beta?

Security Beta

A .......... 1.4

B .......... 0.8

C .......... -0.9

## Answer to relevant Questions

Use the capital asset pricing model to find the required return for each of the following securities in light of the data given. If portfolio A has a beta of 1.5 and portfolio Z has a beta of -1.5, what do the two values indicate? If the return on the market rises by 20%, what impact, if any, would this have on the returns from portfolios A and Z? ...You have been given the following return data on 3 assets—F, G, and H—over the period 2015–2018. Using these assets, you have isolated 3 investment alternatives: Alternative Investment 1 ........ 100% of asset F 2 ...Briefly explain how the dividend decision is made. What corporate and market factors are important in deciding whether, and in what amount, to pay dividends? Briefly describe the behavior of the U.S. stock market over the last half of the 20th century and the early part of the 21st century.Post your question

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