Question
You own a four-stock portfolio, described below, with a total value of $500,000. i) Calculate the portfolio return ii) Calculate the portfolio beta iii) In
You own a four-stock portfolio, described below, with a total value of $500,000.
i) Calculate the portfolio return
ii) Calculate the portfolio beta
iii) In ONE sentence, describe the risk of the portfolio based on your answer for (ii).
One or more of the following formulas may (or may not) be helpful.
| Stock | Latest value | Historical return (previous 10 years) | Std dev of returns (annual) | Beta |
| A | $300,000 | 6.50% | 15.90% | 0.90 |
| B | $50,000 | 8.10% | 24.40% | 1.30 |
| C | $150,000 | -2.20% | 31.20% | 1.20 |
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
Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
