Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you plese explain how to do it what are u mean can u do it A portfolio consists of three stocks: Stock A, Stock
can you plese explain how to do it
what are u mean can u do it
A portfolio consists of three stocks: Stock A, Stock B, and Stock C. The table below provides the covariances between the returns of each pair of stocks, the expected return for each stock, and the proportion of the portfolio's value that is represented by each stock. The risk free rate is 2.5%. Calculate Stock A's required return. Stock A Stock B Stock C Weight Expected Return 13% 30% Stock A 0.090 Stock B 10.036 Stock C 0.045 0.036 0.360 -0.060 0.045 -0.060 0.250 40% 20% 40% 21% 0.07936 0.0612 0.196 14.75% Correct! 15.69% O 11.92% 13.80% O 12.86% A portfolio consists of three stocks: Stock A, Stock B, and Stock C. The table below provides the covariances between the returns of each pair of stocks, the expected return for each stock, and the proportion of the portfolio's value that is represented by each stock. The risk free rate is 2.5%. Calculate Stock A's required return. Stock A Stock B Stock C Weight Expected Return 13% 30% Stock A 0.090 Stock B 10.036 Stock C 0.045 0.036 0.360 -0.060 0.045 -0.060 0.250 40% 20% 40% 21% 0.07936 0.0612 0.196 14.75% Correct! 15.69% O 11.92% 13.80% O 12.86% 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