x Xxfinity stream soundcloud Instagram twitter Portfolio | Robinho... Other Bookmark eturn in 4 hours 1/7 answered portfolio = w; XT Bportfolio , , where wis the weights of the stock in the portfolio (proportion of the total portfolio invested in the stock), and jis a subscript for an individual stock. Working through an example will make these ideas much clearer. Example 4. a. Compute the required rates of return for the following stocks in a portfolio if the average historical one-month Treasury bill rate is 2% and the historical market return is 12.2%, Ticker (Stock) Sinvested B (5 years of monthly returns) Required return GOOG(Alphabet 2% +1.04 12.296 - 296 7,500 1.04 Google's parent co.) = 12.61% 296 +1.51"/12.29.296) CAT (Caterpillar) 13,700 1.51 - 17.4096 296 +0,81"/12.296296) CMG (Chipotle) 9,350 0.81 = 10.26% Note: The one-month T-bill rate of 296 is the risk-free rates. The difference between the historical return on the market portfolio and the risk-free rate, m-re is the market risk premium, MRP. It is 12.2% -2%, or 10.2%, in this example. wa DD Dll FB 59 & 5 6 7 0 8 9 Netflix X xfinity stream soundcloud Instagram twitter Portfolio Robinho. Other Bookmarks kand Return k. Due in 4 hours Inwered 10.2%, in this example. e Q.5.6 Homework. Unawered O What is the required rate of return on a stock with beta of 1.23 if the risk-free rate is 0.9% and the required return on the market portfolio is 8,8%? Round to 0.01%, drop the % symbol Type your numericanswer and submit Unanswered. 3 attempts left Submit 0.5.7 Howwork. Unanswered What is the required rate of return on a stock with beta of 1.23 at the risk-free rate is 0.5 and the market risk premium is 8.847 Round to 0.015, drop the symbol Type your eumerica and submit Unanswered - 3 attempts left Note: in the first of the above two questions, 8.896 is the required return on the market, Tm. In the second one, 8.8% is the market risk premium, Fm do DII DD 10 ( & 7 3 0 5 6 8 9