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Complete all problems and send me back, look at this attachment. Gene finance task. I need solutions for all 1) Consider the following information: Rate
Complete all problems and send me back, look at this attachment.
Gene finance task.
I need solutions for all
1) Consider the following information: Rate of Return If State Occurs State of Economy Boom Bust Probability of State of Economy .70 .30 Stock A .14 .12 Stock B .21 .02 Stock C .39 .07 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % b. What is the variance of a portfolio invested 25 percent each in A and B and 50 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Variance 2) You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta 3) Stock Y has a beta of 1.5 and an expected return of 17.6 percent. Stock Z has a beta of 1.0 and an expected return of 12.3 percent. What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate % 4) You own a portfolio that is 38 percent invested in Stock X, 24 percent in Stock Y, and 38 percent in Stock Z. The expected returns on these three stocks are 12 percent, 18 percent, and 14 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return %Step by Step Solution
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