Purchase Solution

Stock Portfolio expected return and beta

Not what you're looking for?

Ask Custom Question

*see attached for table*

You own a portfolio consisting of the following stocks:

Multiple Choice - calculate expected portfolio return and portfolio beta:

A. Expected portfolio return 10.6% and portfolio beta .90.

B. Expected portfolio return 15.5% and portfolio beta 1.20.

C. Expected portfolio return 17.8% and portfolio beta 1.35.

D. Expected portfolio return 9.9% and portfolio beta 1.00.

Attachments
Purchase this Solution
Solution Summary

The solution examines the stock portfolio expected return and beta.

Solution Preview

You own a portfolio consisting of the following stocks:

Stock Percentage of ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Financial Services questions: Relative Valuation, Analyzing a Portfolio, CAPM and more...

    Portfolio Weights A stock has a beta of .9 and expected return of 12%. A risk-free asset currently earns 6%. a. What is the expected return on a portfolio that is equally invested in the two assets? b.

  • Basic concepts in Finance

    352900 Calculating expected return, risk-free rate and more... 1. A stock has an expected return of 13 percent, its beta is 0.55, and the risk-free rate is 7.15 percent. What must the expected return on the market be? 2.

  • Calculating the expected return and beta of a portfolio after buying a new stock

    4694 Expected Return and Beta of Portfolio You have a portfolio with a total value of $9,000 which has an expected return of 12% with a beta of 1.2. You plan to buy $1,000 of a stock with an expected return of 20% and a beta of 2.0.

  • Expected Return and Beta Risk

    113625 Expected return / beta 17. The expected return on the market is 13% and the risk-free rate is 5%. Your portfolio has a beta of 1.3. What is the expected return on your portfolio? 18. What is the beta of the following portfolio?

  • Portfolio and Stock Beta

    Determine the portfolio beta for the above portfolio. Show all work. b. Determine the expected return on the portfolio based on a Treasury bill yield of 4% and an expected market return of 13%. Show all work. c.

  • Calculating expected return and drawing the CAL

    Alpha = Forecasted Return - Expected return We calculate the expected return using CAPM Expected return = Risk Free Rate + (Market return - risk free rate ) X beta Stock X Expected Return = 5% + (14%-5%) X 0.8 = 12.2% Alpha = 14%-12.2% = 1.8% Stock

  • Expected return and beta for Tundra Corporation

    The solution explains how to calculate the expected return and beta of a portfolio after addition of a new stock

  • Risk and return on investment - Individual stocks and portfo

    is the expected return on a portfolio consisting of 40% in stock A and 60 % in stock B b) What is the standard deviation of this portfolio?

  • Portfolio Betas & expected returns

    What is the portfolio beta? 2. (Using CAPM) A stock has a beta of 1.05, the expected return on the market is 11 % and the risk-free rate is 5.2 %. What must the expected return on the stock be? 3.

View More Related Solutions