Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One year ago, you Purchased 300 shares of Parker Construction at $32.60 a share. During the past year, you received a total of %280 in
One year ago, you Purchased 300 shares of Parker Construction at $32.60 a share. During the past year, you received a total of %280 in dividends. Today, you sold your shares for $35.80 a share. What is your total return on this investment? a. 8.79 percent b. 9.64 percent c. 10.16 percent d. 11.64 percent e. 12.68 percent A stock has a beta of 1.2 and an expected return of 15.0 percent. If the risk-free rate is 5.3 percent, what is the market risk premium? a. 7.1% b. 6.2% c. 9.5% d. 8.1% e. None of the above You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.37, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio? a. 1.63 b. 1.71 c. 1.00 d. 0.98 e. None of the above
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