Question
The following three stocks are available in the market: E(R) Stock A 11.1 % 1.20 Stock B 13.0 1.00 Stock C 15.5 1.40 Market 14.5
The following three stocks are available in the market: |
E(R) | |||
Stock A | 11.1 | % | 1.20 |
Stock B | 13.0 | 1.00 | |
Stock C | 15.5 | 1.40 | |
Market | 14.5 | 1.00 | |
Assume the market model is valid. |
The return on the market is 15.3 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 25 percent Stock A, 40 percent Stock B, and 35 percent Stock C. The return on the market is 15.3 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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