Question: Can someone help us solve for D? Return to question 9 A stock has a beta of 1.29 and an expected return of 12.7 percent.
Can someone help us solve for D?
Return to question 9 A stock has a beta of 1.29 and an expected return of 12.7 percent. A risk-free asset currently earns 4.25 percent. 10 points a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If a portfolio of the two assets has a beta of.89, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) c. If a portfolio of the two assets has an expected return of 11.9 percent, what is its beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If a portfolio of the two assets has a beta of 2.49, what are the portfolio weights? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g.,.1616.) Answer is complete but not entirely correct. a. 8.48% 0.6899 b. Expected return Weight of stock Weight of risk-free asset Beta Weight of stock Weight of risk-free c. 0.3103 1.17 0.6899 X d. 0.3101 X
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