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1. - Data table Stock Percentage of Portfolio Beta Expected Return 1 30% 1.10 2 35% 0.75 3 5% 1.30 4 15% 0.65 5 15%
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- Data table Stock Percentage of Portfolio Beta Expected Return 1 30% 1.10 2 35% 0.75 3 5% 1.30 4 15% 0.65 5 15% 1.50 (Click on the icon in order to copy its contents into a spreadsheet.) 19% 13% 22% 11% 26% Print Done The risk-free rate is 9 percent. Also, the expected return on (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: the market portfolio is 17 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stock's expected return, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the preceding information, plot the security market line on paper. Plot the stocks from your portfolio on your graph. d. From your plot in part c, which stocks appear to be your winners and which ones appear to be losers? e. Why should you consider your conclusions in part d to be less than certain? - Data table Stock Percentage of Portfolio Beta Expected Return 1 30% 1.10 2 35% 0.75 3 5% 1.30 4 15% 0.65 5 15% 1.50 (Click on the icon in order to copy its contents into a spreadsheet.) 19% 13% 22% 11% 26% Print Done The risk-free rate is 9 percent. Also, the expected return on (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: the market portfolio is 17 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stock's expected return, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the preceding information, plot the security market line on paper. Plot the stocks from your portfolio on your graph. d. From your plot in part c, which stocks appear to be your winners and which ones appear to be losers? e. Why should you consider your conclusions in part d to be less than certainStep by Step Solution
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