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Company ABC XYZ S&P500 A. Average 0.018006 0.088953 0.013366 B. STDEV 0.087046 0.232706 0.046874 C. CV 4.834319 2.616072 3.506951 D. Beta 1.470815 2.276075 E. F.
Company | ABC | XYZ | S&P500 | |||
A. Average | 0.018006 | 0.088953 | 0.013366 | |||
B. STDEV | 0.087046 | 0.232706 | 0.046874 | |||
C. CV | 4.834319 | 2.616072 | 3.506951 | |||
D. Beta | 1.470815 | 2.276075 | ||||
E. | ||||||
F. | ||||||
G. CAPM | APR | 0.025 | ||||
Rf | 0.002083 | |||||
R(ABC) | 0.018678 | R(XYZ) | 0.027764 | |||
H. | W(ABC) | 0.4 | ||||
W(XY) | 0.6 | |||||
Beta(p) | ||||||
h. If you formed a portfolio that consisted of 40% ABC and 60% XYZ, what would be the beta and the required return of your two-stock portfolio?
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