Question
Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is
Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is your portfolios expected return? LO4
| Stock A | Stock B | Stock C | Stock D |
Expected Return | 14% | 10% | 7% | 1% |
Standard Deviation | 25% | 12% | 6% | 6% |
Beta | 2.3 | 1.8 | 1.3 | 0.3 |
8.0%
2.0%
5.5%
3.0%
Suppose you have a portfolio equally invested in four stocks. Each stocks expected return, standard deviations, and beta are in the following table. What is your portfolios beta? LO4
| Stock A | Stock B | Stock C | Stock D |
Expected Return | 14% | 10% | 7% | 1% |
Standard Deviation | 25% | 12% | 6% | 6% |
Beta | 2.3 | 1.8 | 1.3 | 0.3 |
1.425
0.45
1.10
1.55
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