Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer all questions completely using multiple choice. A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.6). The amount invested in Coke
please answer all questions completely using multiple choice.
A portfolio comprises Coke (beta of 1.6) and Wal-Mart (beta of 0.6). The amount invested in Coke is $10,000 and in Wal-Mart is $20,000. What is the beta of the portfolio? O 0.93 O 0.98 O 0.84 01.03 QUESTION 2 The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.51. What is the risk-free rate of return? 2.31 percent 2.50 percent O 2.22 percent 0 2.42 percent 2.63 percent UPS, a delivery services company, has a beta of 1.6 and Wal-Mart has a beta of 09. The risk-free rate of interest is 6% and the market risk premium is 9%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart? 15.79% O 14.96% 18.28% O 16.62% QUESTION 4 Use the following information to answer the question(s) below. Portfolio Correlation w/ Firm Weight Volatility Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt Oil 0.35 18% 0.6 Rearden Metal 0.40 15% 0.5 The volatility of the market portfolio is 10% the expected return on the market is 12%, and the risk-free rate of interest is 4%. The beta for Taggart Transcontinental is closest to O 0.80 0.75 O 1.10 0 1.00Step 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