Question: I need help with the second question thank you. AYU week 4-5 Risk and Return Due 6/26/22 1. Given the data below calculate the expected

 I need help with the second question thank you. AYU week

I need help with the second question thank you.

AYU week 4-5 Risk and Return Due 6/26/22 1. Given the data below calculate the expected return and standard deviation for a portfolio that is constructed by investing 50% in each stock. Discuss the results of your portfolio with that of the individual stocks with the data given below. If the risk-free rate is 3% and the market risk premium is 7% - are either of these stocks or the portfolio of stocks a good investment? Why? Economy Great OK Average Poor Recession A B Beta Probability 15% 20% 40% 15% 10% EXP (RETURN) 15.00% 0.50% Return Stock A 60% 30% 15% -10% -45% 1.7 STDDEV 28.33% 13.03% CV 1.89 26.06 Return Stock B -20% -5% 0% 10% 30% 0.7 ABC's stock is currently priced at $100 in the marketplace and is fairly value. This means that the market price = the intrinsic value. The stock is expected to pay a dividend this current year of $2.00. What is the expected value of the stock 1 year from today if the beta of the stock is 1.4, the risk-free rate is 3% and the market risk premium is 6%? For this analysis, assume that CAPM perfectly predicts the total return

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