Conisder the following three individual protfolions cossisting of investments in four stocks: Stock beta John investment Beth

Fantastic news! We've Found the answer you've been seeking!

Question:

Conisder the following three individual protfolions cossisting of investments in four stocks:

Stock beta John investment Beth investment jake investment

Apple 1.3 2500 5000 10000

Tesla 1.0 2500 5000 10000

IBM 0.8 2500 5000 -5000

Amazon -0.5 2500 -5000 -5000

Assuming that the risk free rate is 4% and the expected return on the market is 12%, than calcualte the required return on Jake's portfolio

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

See More Books

Posted Date: Apr 05, 2024 02:36 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
1 If your client is not knowledgeable about the market, you should ____ versus comparable portfolios. increase the frequency of trading increase the risk of the portfolio decrease your time with the...
The simple truss shown has the following dimensions: H1 = 1.90 in; H2 = 1.60 in; L0=31 in; L2 = 14 in; D1 = 0.76 in; D2 = 0.86 in. Both supporting bars have a depth of 0.5 in. If the maximum...
Consider a virtual-circuit network. Suppose the VC number is a 8-bit field. a) What is the maximum number of virtual circuits that can be carried over a link? b) Suppose a central node determines...
Give structural formulas and systematic names for possible isomers of dichlorobenzene, C 6 H 4 Cl 2 .
Zoe Borrillo, the accountant for Comfy Home Furnishings, was having difficulty completing the trial balance of the businesss general ledger. The balance of the Accounts Receivable Control account in...
Pioneers preferred stock is selling for $33 in the market and pays a $3.60 annual dividend. a. If the markets required yield is 10 percent, what is the value of the stock for that investor? b. Should...
65. Doubling the initial concentration of a reactant doubles t1/2 of the reaction then order of reaction is :- (1) 3 (2) 2 (3) 1 (4) Zero
At the beginning of the year, Carla Vista Company had total assets of $763,000 and total liabilities of $296,000. Answer the following questions. (a) If total assets increased $134,000 during the...
Find the slope of the normal line drawn to the graph of each function at the indicated value of x. 6. g(x)=xsin x when x = 7. h(x) = sin x(sin x+cos x) when x = 4 4 For each of the functions below,...
The following exercise is concerned with the TCP state FIN_WAIT_2 (see Figure 5.7). (a) Describe how a client might leave a suitable server in state FIN_WAIT_2 indefinitely. What feature of the...
Write a program to construct a dictionary of all words, defined to be runs of consecutive nonwhitespace, in a given text file. We might then compress the file (ignoring the loss of whitespace...
If a UDP datagram is sent from host A, port P to host B, port Q, but at host B there is no process listening to port Q, then B is to send back an ICMP Port Unreachable message to A. Like all ICMP...
Suppose A, B, and C all make their first carrier sense, as part of an attempt to transmit, while a fourth station D is transmitting. Draw a timeline showing one possible sequence of transmissions,...
In the source routing example, the address received by B is not reversible and does not help B know how to reach A. Propose a modification to the delivery mechanism that does allow for reversibility....
Discuss at least two different cultures' perspectives on the issues of love and relationships.
Calculate Total Contribution Margin for the same items. Total Revenue Total Variable Costs Total Contribution Margin $50.00 a. $116.00 $329.70 b. $275.00 $14,796.00 $7,440.00 c. $40,931.25 d....
What accounts for the disparity in NPMO between the statistical 6 and the popular Six Sigma approach?
What purpose is served by flowcharts?
What is the most common use of stratification?

Conisder the following three individual protfolions cossisting of investments in four stocks: Stock beta John investment Beth

Question:

Expert Answer:

Calculating Required Return on Jakes Portfolio We can use the Capital Asset Pricing Model CAPM to ca... View the full answer

Income Tax Fundamentals 2013

Students also viewed these finance questions