Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the standard deviation of a portfolio consisting of 20 percent stock P and 80 percent stock Q. Company Beta Expected Return Standard Deviation 50%

image text in transcribed
Calculate the standard deviation of a portfolio consisting of 20 percent stock P and 80 percent stock Q. Company Beta Expected Return Standard Deviation 50% Correlation coefficient CORRp,o=0.3 1.3 28% 12% 40% Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.) 36.28 A stock has a beta of 1.25. The risk-free rate is 3% and the market return is 8%. What is the required rate of return for the stock? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (1.e. If your answer is 4.33%, type 4.33 without a % sign at the end.) Hoogle has the beta of 1.95 which you calculated by running a regression. The annual T-bill rate is currently at 2.5%. Your projection of the market risk premium is 7.0%. Hoogle just paid a dividend of $1.50. What is the required rate of return for this equity? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.) 16.15

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

More Books

Students also viewed these Finance questions