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I need help f. If you formed a portiollo that consisted of 50% Goodman stock and 50% Landry stock, what would be its beta and
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f. If you formed a portiollo that consisted of 50% Goodman stock and 50% Landry stock, what would be its beta and its required return? The beta of a portiollo is simply a washted average of the betas of the stocks in the portfolio, so this portfolio's beta would be: Portfolio beta = g. Suppose an investor wants to include Goodman Industries' stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfollo's required return if it consists of 25% of Goodman, 15% of Stock A, 40% of Stock B, and 20% of Stock C. Beta Goodman Stock A Stock B Stock C 0.769 0.985 1.423 Portfolio Weight 25% 15% 40% 20% 100% Portfolio Beta = Required retum on portfolio: Risk-free rate + Market Risk Premium Beta + 11 11 11 f. If you formed a portiollo that consisted of 50% Goodman stock and 50% Landry stock, what would be its beta and its required return? The beta of a portiollo is simply a washted average of the betas of the stocks in the portfolio, so this portfolio's beta would be: Portfolio beta = g. Suppose an investor wants to include Goodman Industries' stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfollo's required return if it consists of 25% of Goodman, 15% of Stock A, 40% of Stock B, and 20% of Stock C. Beta Goodman Stock A Stock B Stock C 0.769 0.985 1.423 Portfolio Weight 25% 15% 40% 20% 100% Portfolio Beta = Required retum on portfolio: Risk-free rate + Market Risk Premium Beta + 11 11 11 Step by Step Solution
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