Question
1. You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent
1. You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 0.80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
what is the Portfolio beta ?
2.
A stock has a beta of 0.95, the expected return on the market is 17 percent, and the risk-free rate is 9 percent.
What must the expected return on this stock be? (Do not round your intermediate calculations. Round the final answer to 2 decimal places.)
Expected return %
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