Question
You have a stock portfolio that consists of the following positions: Corporation Shares Price Beta Amazon 25 $3299.86 1.16 Apple 90 $143.76 1.22 Tesla 85
You have a stock portfolio that consists of the following positions:
| Corporation | Shares | Price | Beta |
| Amazon | 25 | $3299.86 | 1.16 |
| Apple | 90 | $143.76 | 1.22 |
| Tesla | 85 | $818.32 | 1.89 |
| Costco | 75 | $450.66 | 0.64 |
| Disney | 50 | $174.41 | 1.2 |
A. What is the portfolio beta? [Enter your answer with 2 decimal places; Hint: Compute the portfolio weights for each stock.] B. If the market return is expected to be 7% and the risk-free rate is 3%, then what is the required rate of return of the portfolio? % [Enter your answer as a percentage with 2 decimals, e.g. 10.25 for 10.25%.]
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
Introduction To Blockchain The Main Concepts Of Blockchains Bitcoin And Cryptocurrencies
Authors: Norman Guagliano
1st Edition
979-8354135547
