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The next two questions pertain to the problem below. You own a 4 security portfolio. You invested $5,000 in stock W, $20,000 in stock X,
The next two questions pertain to the problem below. You own a 4 security portfolio. You invested $5,000 in stock W, $20,000 in stock X, $15,000 in stock Y and $10,000 in a treasury bond. The expected returns on these securities are negative 4%, +8%, +12.5% and +3% respectively. Note: only stock W reports a negative expected return. 19. What is the expected return on your portfolio? O Below 6% Between 6% -6.4% Between 6.4% -6.8% O Between 6.8% - 7.2% O Between 7.2%-7.6% O Greater than 7.6% Question 20 1 pts 20. With respect to the information in question # 19 above, assume stock W has a beta of 1.2; stock X has a beta of 1.4 and stock Y has a beta of 0.5. Calculate the portfolio beta? Between 0 - 0.6 Between 0.6 -0.7 O Between 0.7 -0..8 O Between 0.8 -0.9 O Between 0.9 - 1.0 Between 1.0
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