Question
A) You have a $200,000 portfolio consisting of the following stocks. What is the beta of your portfolio? (5 points) Stock Investment Beta A $20,000
A) You have a $200,000 portfolio consisting of the following stocks. What is the beta of your portfolio? (5 points)
| Stock |
| Investment |
| Beta |
| A |
| $20,000 |
| 1.20 |
| B |
| $50,000 |
| 0.80 |
| C |
| $80,000 |
| 1.00 |
| D |
| $50,000 |
| 1.20 |
| Total |
| $200,000 |
|
|
B) Risk-free rate is 4%, and market return is 6%. Please calculate the required return of this portfolio using CAPM. (5 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Essential Finance Guide
Authors: DK Publishing
1st Edition
078948157X, 978-0789481573
