Question
The following three stocks are available in the market: E(R) Stock A 10.5 % 1.27 Stock B 13.7 1.07 Stock C 16.2 1.47 Market 14.1
The following three stocks are available in the market: E(R) Stock A 10.5 % 1.27 Stock B 13.7 1.07 Stock C 16.2 1.47 Market 14.1 1.00 Assume the market model is valid. The return on the market is 14.9 percent and there are no unsystematic surprises in the returns. What is the return on each stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Return Stock A % Stock B % Stock C % Assume a portfolio has weights of 20 percent Stock A, 35 percent Stock B, and 45 percent Stock C. The return on the market is 14.9 percent and there are no unsystematic surprises in the returns. What is the return on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Return on the portfolio %
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