Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

b c Suppose you invest 60%,12%, and 28% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the

image text in transcribed

b

image text in transcribed

c

image text in transcribed

Suppose you invest 60%,12%, and 28% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 0.9. What is the beta of the portfolio? Enter your answer rounded to 3 DECIMAL PLACES. Enter your response below. Consider a stock that has a covariance of returns to the market of 0.0025 . The standard deviation of the market is 0.07 . What is the beta of this stock? Enter your answer rounded to 2 DECIMAL PLACES. Enter your response below. Given a risk-free rate of 2.9%, a market risk premium of 5.3%, and a beta of 1.3, what is the expected return of the stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not put the percent sign in your answer. Enter your response below

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

Small Business Terms Financial Education Is Your Best Investment

Authors: Thomas Herold

1st Edition

1798900483, 978-1798900482

More Books

Students also viewed these Finance questions

Question

=+b. The firm operates in the short run despite sustaining a loss.

Answered: 1 week ago

Question

What is a verb?

Answered: 1 week ago