Question
Risk free rate is 3%, you predict market expected return to be 11%, beta for stock x is 1.25, beta for stock y is 0.6,
Risk free rate is 3%, you predict market expected return to be 11%, beta for stock x is 1.25, beta for stock y is 0.6, what is the required return for both stocks in well diversified portfolios?
The risk-free rate is 2%, the market risk premium is 8.00%, and portfolio A has a beta of 2. What is the required rate of return on this portfolio?
Stock A has a beta of 1.5, stock B has a beta of 0.75, you invest 30% in A and 70% in B. What is the beta on the portfolio?
You are examining a portfolio managers active investing portfolio. The portfolio has a beta of 2 and has an average return of 15%. The risk free rate is 1% and the market return is 10%, is the managers active investing strategy working?
You are comparing two stocks, what risk measure should you consider if you are just going to hold an individual stock? What risk measure should you consider if you are just going to include the stock in a well diversified portfolio?
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