Question
Portfolio Beta Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000
Portfolio Beta
Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 2.4. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
Required Rate of Return
AA Corporation's stock has a beta of 0.4. The risk-free rate is 5%, and the expected return on the market is 13%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.
%
Required Rate of Return
Suppose rRF = 6%, rM = 11%, and rA = 12%.
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Calculate Stock A's beta. Round your answer to one decimal place.
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If Stock A's beta were 1.8, then what would be A's new required rate of return? Round your answer to one decimal place.
%
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The Oxford Handbook Of Hedge Funds
Authors: Douglas Cumming, Sofia Johan, Geoffrey Wood
1st Edition
0198840950, 978-0198840954
