Question
You have the following information on two securities in which you have invested: Security Expected return Standard deviation Beta Percent Invested (w) Xerox 15 %
You have the following information on two securities in which you have invested:
| Security | Expected return | Standard deviation | Beta | Percent Invested (w) | |||||
| Xerox | 15 | % | 5.5 | % | 1.00 | 39 | % | ||
| Ford | 10 | % | 4.2 | % | 0.94 | 61 | % | ||
Which stock is riskier in a portfolio context? -Select-XeroxFordItem 1 is riskier. Which stock is riskier if you are considering them as individual assets (not part of a portfolio)? -Select-XeroxFordItem 2 is riskier.
Compute the expected return on the portfolio. Round your answer to two decimal places. %
If the securities have a correlation of +0.70, compute the standard deviation of the portfolio. Round your answer to two decimal places. %
Compute the beta of the portfolio. Round your answer to two decimal places.
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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
