Question
A stock has a beta of 1.1 and an expected return of 15 percent. A risk-free asset currently earns 4.6 percent. a. What is the
A stock has a beta of 1.1 and an expected return of 15 percent. A risk-free asset currently earns 4.6 percent.
a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Expected return ? %
b. If a portfolio of the two assets has a beta of .92, what are the portfolio weights? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Portfolio Weight ?
xS ? %
xrf ? %
c. If a portfolio of the two assets has an expected return of 9.50 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Beta ?
d. If a portfolio of the two assets has a beta of 1.33, what are the portfolio weights? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Porfolio Weight
xS ? %
xrf ? %
PLEASE FOLLOW INSTRUCTIONS VERY CAREFULLY BECAUSE I HAVE SPENT A FORTUNE ON THIS PROBLEM BECAUSE NO ONE HAS BEEN ABLE TO FIGURE IT OUT, SO I HAVE FAITH IN YOU !!!!!! ALSO, PLEASE FOLLOW INSTRUCTIONS ON ROUNDING DECIMALS, PLEASE AND THANK YOU SOOO MUCH !!!!!!!
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