Question: Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.2 1.0 A 8.2 1.4 a. Calculate the expected return of portfolio

Consider the following information:

Portfolio Expected Return Beta
Risk-free 6 % 0
Market 10.2 1.0
A 8.2 1.4

a.

Calculate the expected return of portfolio A with a beta of 1.4. (Round your answer to 2 decimal places.)

Expected return %

b.

What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)

Alpha %

Step by Step Solution

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 Finance Questions!

Q:

Which sentence is more emphatic? Why? a. Artisanal, small-batch burgers will compete well against the burger giants. b. Although many new burger restaurants are opening, ours will be unique because...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 10 % 0 Market 15.0 1.0 A 11.2 0.6 a. Calculate the expected return of portfolio A with a beta of 0.6. (Round your answer...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 7% 0 Market 12.8% 1.0 portfolio A 11.5% 1.9 what is alpha of a portfolio a? 4.5% -1.3% 17.32% -6.52%

Q:

An investment earns 10% the first year, earns 15% the second year, and loses 14% the third year. The total compound return over the 3 years was __________. Consider the following information:...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 13.2 1.0 A 11.2 2.1 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 2.1. (Round...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.8 1.0 A 8.8 1.7 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.7. (Round your...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 12.0 1.0 A 10.0 1.5 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 1.5. (Round...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.8 1.0 A 8.8 1.7 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.7. (Round your...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 6% 0 Market 12.0 1.0 A 10.0 1.5 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. (Round your...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 7 % 0 Market 10.4 1.0 A 9.0 1.5 a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. (Round your...

Q:

Consider the following information: Portfolio Expected Return Beta Risk-free 7 % 0 Market 10.4 1.0 A 9.0 1.5 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 1.5. (Round...

Q:

Farflung Corporation has in excess of 60 subsidiaries worldwide. It owns 65 percent of the voting common stock of Micro Company and 80 percent of the shares of Eagle Corporation. Micro sold $400,000...

Q:

Calculate each compound event probability: a. X

Q:

A company will pay a $ 2 per share dividend in year 1 . The dividend in two years will be $ 4 per share, and it is expected that dividends will grow at 5 % per year thereafter. The expected rate of...

Q:

ATA L Nork in process, August 1 ( 4 0 0 pounds, 5 0 % completed ) \ table [ [ Cost per equivalent unit of materials for July,$ 3 . 1 0

Q:

18. If you have power, then people will dislike and fear you.

Q:

How does Johns experience relate to questions of organizational power and politics?

Q:

1. What do you think has happened here? Who, and in what way, are the various participants responsible for the outcome?