Stock J has a beta of 1.2 and an expected return of 13.16 percent, while Stock...
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Stock J has a beta of 1.2 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.1 percent. You want a portfolio with the same risk as the market. a. What is the portfolio weight of each stock? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616. b. What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Stock J has a beta of 1.2 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.1 percent. You want a portfolio with the same risk as the market. a. What is the portfolio weight of each stock? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616. b. What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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