Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tests de niveau gra... WK An investor has Regeneron Pharmaceuticals (REGN), Clorox (Clx), Microsoft (MSFT) and Nvidia (NVDA) stocks. Calculate the beta of the portfolio,

image text in transcribed
Tests de niveau gra... WK An investor has Regeneron Pharmaceuticals (REGN), Clorox (Clx), Microsoft (MSFT) and Nvidia (NVDA) stocks. Calculate the beta of the portfolio, then the required rate of return for the following portfolio. Stock Percentage Beta REGN 10% 0.53 CLX 20% 0.22 MSFT 25% 0.95 NVDA 15% 1.33 Assume the return on T-bills is 0.17% and the return on the total stock market is 7.5%. The required rate of return of the portfolio is 6.75% The required rate of return of the portfolio is 6.69% The required rate of return of the portfolio is 7.01% The required rate of return of the portfolio is 7.15%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292

More Books

Students also viewed these Finance questions