Question
1. You are invested 10.20% in growth stocks with a beta of 1.971, 15.90% in value stocks with a beta of 0.849, and 73.90% in
1. You are invested 10.20% in growth stocks with a beta of 1.971, 15.90% in value stocks with a beta of 0.849, and 73.90% in the market portfolio. What is the beta of your portfolio? After completing all calculations, please round your answer to four decimal places.
- Beta:
2. You are invested 37.02% in growth stocks with a beta of 1.728 , 28.22% in value stocks with a beta of 1.222 , and 34.76% in the market portfolio. What is the beta of your portfolio?After completing all calculations, please round your answer to four decimal places.
- Beta:
3. What is the value of a share of preferred stock that promises to pay $2.95 every year, indefinitely, if you have a required rate of return of 7.81%? Once you have completed all calculations, please round your answer to two decimal places.
Step by Step Solution
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Step: 1
1 Calculating the beta of the portfolio Given information 1020 invested in growth stocks with a beta ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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