You have a $250,000 portfolio consisting of J&J, Pfizer, and AMC. You put $100,000 in J&J,...

 

Transcribed Image Text:

You have a $250,000 portfolio consisting of J&J, Pfizer, and AMC. You put $100,000 in J&J, $80,000 in Pfizer, and the rest in AMC. J&J, Pfizer, and AMC have betas of 0.72, 0.65 and 1.42, respectively. The risk-free return is 1.5% and the market return is 10.9 4a) What is your portfolio beta? 4b) which is the expected return for each of the stocks according to the CAPM? 4c) Which is the expect return of your portfolio according to your portfolio beta? You have a $250,000 portfolio consisting of J&J, Pfizer, and AMC. You put $100,000 in J&J, $80,000 in Pfizer, and the rest in AMC. J&J, Pfizer, and AMC have betas of 0.72, 0.65 and 1.42, respectively. The risk-free return is 1.5% and the market return is 10.9 4a) What is your portfolio beta? 4b) which is the expected return for each of the stocks according to the CAPM? 4c) Which is the expect return of your portfolio according to your portfolio beta?

Answer rating: 100% (QA)

a Calculating the Portfolio Beta Stock Investment in ... View the full answer