Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information is for the next three questions. Investor P has the following portfolio: Stock Amount Return Beta A 10,000 10% 1.2 B 30,000
The following information is for the next three questions. Investor P has the following portfolio:
Stock |
Amount |
Return |
Beta |
A |
10,000 |
10% |
1.2 |
B |
30,000 |
12% |
0.8 |
C |
20,000 |
15% |
1.4 |
D |
40,000 |
20% |
2.0 |
01 - What are the weights of these four stocks in the portfolio?
A. | w1= 20%, w2= 30% w3 = 20% w4= 10%
| |
B. | w1= 10%, w2= 40% w3 = 20% w4= 10%
| |
C. | w1= 10%, w2= 30% w3 = 20% w4= 40%
| |
D. | w1= 10%, w2= 30% w3 = 5% w4= 25% |
02 - What is the expected return of the portfolio?
A. | 15.6%.
| |
B. | 12.8%
| |
C. | 18.6%
| |
D. | 11.2% |
03 - What is the Beta of the portfolio?
A. | 1.6 | |
B. | 2.3 | |
C. | 1.1 | |
D. | 0.95 | |
E. | 1.44 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started