Question
please give me the answer for those questions 1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock
please give me the answer for those questions 1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the portfolio's beta? Round your answer to two decimal places. 2. AA Industries's stock has a beta of 0.6. The risk-free rate is 3.5%, and the expected return on the market is 13%. What is the required rate of return on AA's stock? Round your answer to two decimal places. 3. As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries's stock as market conditions change. Suppose rRF = 3%, rM = 11%, and bUTI = 1.9. What is rUTI, the required rate of return on UTI Stock? Round your answer to two decimal places. 4. Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.45. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.95. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places. 5. You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 0.75. You are considering selling $100,000 worth of one stock with a beta of 1.05 and using the proceeds to purchase another stock with a beta of 1.3. What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places.
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