Question: A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40%

A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.

2. Consider a portfolio comprised a four securities in the following proportions and with the indicated security beta.

Security	Amount invested	Beta	Expected return
A	1.5 million / 33.3%	1.0	12.0%
B	1.0 million / 22.2%	1.5	13.0%
C	2 million / 44.4%	0.8	9.0 %

A. What is portfolio's beta ?

B. What is the portfolio's expected return?

Step by Step Solution

★★★★★

3.40 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...

Please do these questions: -What sources of value most plausibly account for the differences between buyer and seller? -Structure and execute a discounted cash flow valuation of all of the MW...

i'm need so major help with a finance assignment which is due in 6 hours. Can someone help me? please see attachment. BFIN3321 FINAL EXAM FALL I 2016 MULTIPLE CHOICE 1. The volatility of an...

THIS QUESTION IS DUE IN EXACTLY 1 HOUR AND 45 MINUTES. I WILL PAY EXTRA 10 DOLLARS IN TIP IF SOMEONE TYPES THE EXACT ANSWER REQUESTED. PLEASE RESPOND TO THE EACH AND EVERY QUESTION IN A TOTAL OF 3-4...

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

are the peroamtage on i partaio 5. Suppose R.-9%, RM-14%, and B-13. a) What is R, the required rate of return on Stocki? b) Now supposek(1) increases to 10 percent or (2) decreases to 8 percent. The...

Hi, I have an Assignment for my Finance Subject. I have attached the necessary documentation here for you to view including the Lecture slides of all the Topics covered for this assignment. Please...

Analyze financial case of HBR "The State of South Carolina" Exhibit1 Annual Total Returns 1926-1997 (in percent) Treasury Treasury Corporate Common Year Inflation Bills Bonds Bonds Stocks 1926 -1.48...

Let X, Y, and Z have the joint probability density function (a) Find k. (b) Find P (X , l

Multiple Choice Questions 1. Which of the following is expensed under the principle of systematic and rational allocation? a. Salespeoples monthly salaries b. Insurance premiums c. Transportation to...

Tranactions of a compary that include the purchase and sale of newouces that are expected se benefir ne consary for several years are referred to as: M . Orolice Expenditors actation. Inverting...

Determine f'(r) if re+ secz sec z (a) f(r) In 2 + 1 logs (r 1) + (b) f(r) (c) f(r)- (r + z)- co(I) (r+r) *(d) f(r)- r

schematic diagram of a va- por-compression refrigeration system with two evapora- tors using Refrigerant 134a as the working fluid. This arrangement is used to achieve refrigeration at two differ-...

Summarize what you learned about performance appraisals and explain steps you would take and strategies you would employ to appraise an employee successfully.

The twin primes are pairs of primes that have a difference of 2. The first several twin primes are: (3,5),(5,7),(11,13),... Use the following faster version of isPrime(n) to: (1) print out the first...

How to Open and Verify Your Chime Account: StepbyStep Guide (2025) Buy Verified Chime Accounts from fastusait.com In today's fintech-driven world, a verified Chime account provides seamless banking...

Harold Conners (Social Security number 785-23-9873) lives at 13234 DeMilo Drive, Houston, TX 77052, and is self-employed for 2012. He estimates his required annual estimated tax payment for 2012 to...

Sally and Charles Heck received the following dividends and interest during 2012: Assuming the Hecks file a joint tax return, complete Schedule B of Form 1040 (on page 2-33) for them for the 2012 tax...

Yolanda earns $112,000 in 2012. Calculate the FICA tax that must be paid by: Yolanda:.....................Soc.Sec..................$__________...

11.44. A recent article6 used multiple regression to predict attitudes toward homosexuality. The researchers found thatthe effect ofnumber ofyears of education on a measure of tolerance toward...

11.38. In about 200 words, explain to someone who has never studied statistics what multiple regression does and how it can be useful.

11.33. Refer to the student data file you created in Exercise 1.12. For variables chosen by yourinstructor, fit a multiple regression model and conduct descriptive and inferential statistical...