Question: 1. Problem 8.01 (Expected Return) ook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of this Rate of Return if


1. Problem 8.01 (Expected Return) ook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of this Rate of Return if Company's Products Demand Occurring this Demand Occurs Weak 0.1 (26%) Below average 0.2 (10) Average 0.3 12 Above average 0.3 28 Strong 62 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratlo. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: 0.1 Standard deviation: Coefficient of variation: Sharpe ratio: Problem 8.02 (Portfolio Beta) eBook An individual has $40,000 invested in a stock with a beta of 0.6 and another $50,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places 3. Problem 8.03 (Required Rate of Return) ebook Assume that the risk free rate is 7,5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 37 Round your answer to two decimal places %
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