# 1. You are invested 38.10% in growth stocks with a beta of 1.853, 36.70% in value stocks with a beta...

## Question:

**1. **You are invested 38.10% in growth stocks with a beta of 1.853, 36.70% in value stocks with a beta of 0.559, and 25.20% in the market portfolio. What is the beta of your portfolio? After completing all calculations, please round your answer to four decimal places.

- Beta:

**2**. The market risk premium for next period is 9.10% and the risk-free rate is 2.10%. Stock Z has a beta of 1.212 and an expected return of 14.90%. Calculate the following. Please answers as percentages (e.g. .1234 should be written as 12.34):

- Market's reward-to-risk ratio: %
- Stock Z's reward-to-risk ratio: %

**3.** An analyst gathered the following information for a stock and market parameters: stock beta = 1.020; expected return on the Market = 12.00%; expected return on T-bills = 2.00%; current stock Price = $7.61; expected stock price in one year = $14.71; expected dividend payment next year = $1.60. Calculate the following. Please answers as percentages (e.g. .1234 should be written as 12.34):

- Required return for this stock: %
- Expected return for this stock: %

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