Question
Stock XYZ has a beta of 1.3 and an expected return (r S ) of 9.3%. The risk-free rate (r RF ) is currently 2.6%.
Stock XYZ has a beta of 1.3 and an expected return (rS) of 9.3%. The risk-free rate (rRF) is currently 2.6%.
What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free asset?
Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)
You own a portfolio invested 25% in Stock Q, 20% in Stock R, 10% in Stock S, and the remainder in Stock T.
The betas of these stocks are 1.19, 0.94, 1.11, and 0.83 respectively.
What is your portfolio Beta?
Enter your answer as a number with 2 decimal places of precision (i.e. 1.23).
HINT: you will need to first calculate the weight of Stock T.
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