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thats all i know 1) Assume market portfolio decreases by 8%, aggressive stock A will decrease by 10% and defensive stock D will decrease by
thats all i know
1) Assume market portfolio decreases by 8%, aggressive stock A will decrease by 10% and defensive stock D will decrease by 6%. Find the beta of stock A and stock D? 2) The risk-free rate is 3% and the required return on the market is 11%. What are the required returns on each of the stocks by CAPM model and the corresponding required return of a portfolio (consisting of 65% in stock A and 35% in stock D)? 3) According to the scenario analysis, we are given that Stock A's expected return is 14%, Stock D's expected return is 9%, and expected return for the portfolio (consisting of 65% in stock A and 35% in stock D) is 12.25%. Are the stock A, stock D and the portfolio over-valued, fairly valued or under-valued? 1) Assume market portfolio decreases by 8%, aggressive stock A will decrease by 10% and defensive stock D will decrease by 6%. Find the beta of stock A and stock D? 2) The risk-free rate is 3% and the required return on the market is 11%. What are the required returns on each of the stocks by CAPM model and the corresponding required return of a portfolio (consisting of 65% in stock A and 35% in stock D)? 3) According to the scenario analysis, we are given that Stock A's expected return is 14%, Stock D's expected return is 9%, and expected return for the portfolio (consisting of 65% in stock A and 35% in stock D) is 12.25% Are the stock A, stock D and the portfolio over-valued, fairly valued or under-valued Step by Step Solution
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