Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

23.Cher owns a portfolio that has a value of 67,200 dollars and consists of 3 stocks. She has 23,400 dollars worth of stock A, which

23.Cher owns a portfolio that has a value of 67,200 dollars and consists of 3 stocks. She has 23,400 dollars worth of stock A, which has a beta of 0.3; she has 2,600 shares of stock B, which has a share price of 6 dollars and a beta of 0.66; and she has some stock C, which has a beta of 1.42. What is the beta of Chers portfolio? Round your answer to 2 decimal places (for example, 2.89, 0.70, or 1.00).

24.If the expected return on the market is 14.46 percent, the inflation rate is 1.82 percent, the risk-free rate is 5.47 percent, and Fairfax Paint common stock has a beta of 0.3, then what is the expected return for Fairfax Paint stock? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

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

Step: 3

blur-text-image

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

Property Finance

Authors: Giacomo Morri, Antonio Mazza

1st Edition

1118764404, 978-1118764404

More Books

Students also viewed these Finance questions