Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) What is the expected return for Walmart stock ( open the Walmart Beta chart) when the risk-free rate is 2% and the expected return

1) What is the expected return for Walmart stock ( open the "Walmart Beta" chart) when the risk-free rate is 2% and the expected return on the market is 11.6%? Answer in % terms w/o % sign and to 2 decimal places (1.23)

2) What is the beta for a 2 stock portfolio with a 0.79 weight in Walmart stock and the remainder in Amazon?

image text in transcribed

2 Stock Portfolio 30 Note: .5 x Walmart Beta +.5 x Amazon Beta = .5 x 0.3616+.5 x 1.1634 = 0.7625 y = 0.7625x + 1.0296 R2 = 0.3519 20 10 | Portfolio Monthly Returns - 10 -5 10 15 - 10 -20 -30 S&P 500 Monthly Return

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance An Active Approach To Help You Develop Successful Financial Skills

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

4th Edition

0078034787, 978-0078034787

More Books

Students also viewed these Finance questions