Question: need help on 12 Question 12 (5 points) What is the required return of the following well-diversified portfolio if the risk free rate is 2%

need help on 12

Question 12 (5 points) What is the required return of the following well-diversified portfolio if the risk free rate is 2% and the return on the market is 9%? Stock A Amount Beta Expected Return $100,000 0.9 9 $200,000 1.2 10 $100,000 1.6 12 B 10.63% 10.33% 10.25% 10.58% Page 12 of 28 Next Page

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!

You work in the human resources department of your company helping new employees fill out the necessary paperwork to get their first paycheck. There are a number of decisions that employees must make...

Question 1 1 pts Calculate the standard deviation of stock PSU over the last three years. Year 1: 10%, Year 2: -3%, Year 3: 5% 0.58% 0.70% 1.17% 3.54% 6.55% Question 2 1 pts True or False: A rational...

2. Answer both Part(a) and Part(b) below (a) Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? (10...

2. Answer both Part(a) and Part(b) below (a) Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? [10...

Time Taken:0:43:16 Rupinderpal Kaur: Attempt 1 HUVA Question 4 (6 points) Calculate the expected Return of each of the following stocks. The risk free rate of return is 4.2% and the market rate of...

I cannot get the answers to #1, 3, 19, or 27. Can you find the answers to any of them? Quiz #6: Stock Risk and Return Closes: Tuesday Nov 1st at 11:55pm 30 questions ...60 points Numerical Problems...

Suppose a portfolio consists of 50% of stock Do and 50% of stock GDT, calculate the beta of this portfolio (use stock betas estimated from 5 to compute the portfolio's beta (1 point). What is the...

pls ans ALL QUESTION 23 Consider an APT world with one systematic risk: MARKET risk. Expected return for the market portfolio is 8% and risk-free rate is 2%. A stock analyst estimates the following...

CAN YOU PLEASE EXPLAIN THE ANSWERS Question 5 : (8 Marks) Explain shortly Sharpe Optimal Portfolio. (4 points) Explain shortly Value at Risk (4 points) Sharpe optimal Portfolio This optimal portfolio...

... AutoSave OFF ABD. C.... Home Insert Draw Page Layout Formulas Data DS 1 2 Paste 3 4 5 6 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 70 X Lia - g Calibri (Body) Ready B 1 x fx A...

please help me with those question. Thank you very much. i only can do question 9 Question 12 Complete Marked out of 1.00 risk aversion coefficient. The graph below shows the location in portfolio...

The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...

Observations (Xi, Yi), i = 1,...,n, are made from a bivariate normal population with parameters (Î¼X, Î¼Y, Ï2X, Ï2Y, p), and the model Yi = Î± +...

What is a key characteristic of the feminine style, according to Hiatt? A ) Direct and outheritative tone B ) Emotional appedi and pertenal eneverment C ) Use of complex jargon and twehnicel language...

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Which other measures might be useful for analyzing job cost variance?

What is the purpose of an IF THEN statement for this lab?

Which job has the highest revenue?