Question
1.Nanometrics, Inc. has a beta of 3.47. If the market return is expected to be 12.00 percent and the risk-free rate is 7.00 percent, what
1.Nanometrics, Inc. has a beta of 3.47. If the market return is expected to be 12.00 percent and the risk-free rate is 7.00 percent, what is Nanometrics' required return?
2.You have a portfolio with a beta of 1.83. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.94?
3.If the risk-free rate is 7.50 percent and the risk premium is 5.7 percent, what is the required return?
4.Year-to-date, Oracle had earned a 1.46 percent return. During the same time period, Valero Energy earned 7.86 percent and McDonald's earned 0.56 percent.
If you have a portfolio made up of 35 percent Oracle, 30 percent Valero Energy, and 35 percent McDonald's, what is your portfolio return?
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