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Consider the betas and portfolio weights provided below. The risk-free rate is 2.25% and the market risk premium is 8.15%. Stocks Beta Weights Risk-Free Rate
Consider the betas and portfolio weights provided below. The risk-free rate is 2.25% and the market risk premium is 8.15%. | |||||||
Stocks | Beta | Weights | Risk-Free Rate | 3.00% | |||
Intel | 1.17 | 35% | Market Risk Premium (Rm- Rf) | 9.00% | |||
Oracle | 1.2 | 25% | |||||
Microsoft | 0.65 | 15% | |||||
Dell | 1.19 | 25% |
Part B) | What is your portfolio Beta? | |||||
(2 points) | ||||||
Portfolio Beta | ||||||
Part C) | Does your portfolio has a systematic risk greater or lower than the overall market? Explain | |||||
(2 points) | ||||||
Part D) | What is the expected return of your portfolio? | |||||
(2 points) | ||||||
E(R) Portfolio |
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