4. 5. Assume that the risk-free rate is 5 percent and the expected market rate of...

 

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4. 5. Assume that the risk-free rate is 5 percent and the expected market rate of return is 11 percent. What is the expected rate of return of SNAP? a. b. C. What is the expected rate of return of NFLX? a. What is the expected rate of return of SPY? An individual has $15,000 invested in NFLX and $45,000 invested AAPL. What is her portfolio's beta? b. "e="f+B(rm-gl where r₂ = Required Return on Equity =Risk-free Rate =Market Return B=Stock Beta (-)=Equity Risk Premium The risk-free rate is 2 percent, and the market risk premium (amount market rate exceeds the risk free rate) is 5 percent. If you desire a return on your investment of 9.5 percent, what must be the beta value of your portfolio of stocks? If you wanted to achieve this Beta with a portfolio of FB and TSLA, what proportion of your portfolio would be FB and what proportion would be TSLA (round your answer to two decimals, e.g., 73.27% and 26.73%)? a. Snap (SNAP) 1.34 b. Apple (AAPL) 1.23 c. Tesla Motors (TSLA) 2.03 d. Facebook (FB). 1.24 e. Amazon (AMZN) 1.12 f. Netflix (NFLX) 0.81 g. DoorDash (DASH) - h. SPY 1.01 4. 5. Assume that the risk-free rate is 5 percent and the expected market rate of return is 11 percent. What is the expected rate of return of SNAP? a. b. C. What is the expected rate of return of NFLX? a. What is the expected rate of return of SPY? An individual has $15,000 invested in NFLX and $45,000 invested AAPL. What is her portfolio's beta? b. "e="f+B(rm-gl where r₂ = Required Return on Equity =Risk-free Rate =Market Return B=Stock Beta (-)=Equity Risk Premium The risk-free rate is 2 percent, and the market risk premium (amount market rate exceeds the risk free rate) is 5 percent. If you desire a return on your investment of 9.5 percent, what must be the beta value of your portfolio of stocks? If you wanted to achieve this Beta with a portfolio of FB and TSLA, what proportion of your portfolio would be FB and what proportion would be TSLA (round your answer to two decimals, e.g., 73.27% and 26.73%)? a. Snap (SNAP) 1.34 b. Apple (AAPL) 1.23 c. Tesla Motors (TSLA) 2.03 d. Facebook (FB). 1.24 e. Amazon (AMZN) 1.12 f. Netflix (NFLX) 0.81 g. DoorDash (DASH) - h. SPY 1.01