Question
4.Portfolio Return Year-to-date, Company X had earned a 2.5 percent return.During the same time period, Company Y earned + 10 percent and Company Z earned
4.Portfolio Return Year-to-date, Company X had earned a 2.5 percent return.During the same time period, Company Y earned + 10 percent and Company Z earned - 8 percent (negative 8%).If you have a portfolio made up of 40 percent Company X, 35 percent Company Y, and 25 percent Company Z, what is your portfolio return?___%
5.You hold the positions in the table below.COMPANYPRICE# SHARESBETAGoodmonth$14.00500+ 4.0Icestone$30.00100
-4.0Bridgerock$40.00250+ 2.4
A.What is the beta of your portfolio?
B.If you expect the market to earn 14 percent and the risk-free rate is 4 percent, what is the required return of the portfolio?
6.TAB Inc. has a $1,000 (face value), 20 year bond issue selling for $829.73 that pays an annual coupon of 8.0 percent.What would be TAB's current before-tax component cost of debt?
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