Question: Week 6: Homework i 9 5 points Skipped Saved I Help = Save & Exit Submit Check my work A stock has a beta

Week 6: Homework i 9 5 points Skipped Saved I Help =

Week 6: Homework i 9 5 points Skipped Saved I Help = Save & Exit Submit Check my work A stock has a beta of 1.21 and an expected return of 11.9 percent. A risk-free asset currently earns 3.85 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. If a portfolio of the two assets has a beta of .81, what are the portfolio weights? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. c. If a portfolio of the two assets has an expected return of 11.1 percent, what is its beta? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d. If a portfolio of the two assets has a beta of 2.41, what are the portfolio weights? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. eBook Hint Print a. Expected return References b. Weight of stock Mc Graw Hill Weight of risk-free asset c. Beta d. Weight of stock Weight of risk-free Q % < Prev 9 of 10 Next > L + cricu W < ENG IN 9:34 PM 4/2/2024 PRE

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