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You own a portfolio that is 35 percent invested in Stock X, 45 percent in Stock Y, and 20 percent in Stock Z The expected

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You own a portfolio that is 35 percent invested in Stock X, 45 percent in Stock Y, and 20 percent in Stock Z The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively Required: What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimel places (e.g.. 32.16).) Expected return on the portfolio Consider the following information Rate of Return if State OcCurs Probability of State State of Economy Recession of Economy Stock A 02 Stock B 30 15 Normal 55 10 18 Boom 30 15 31 Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answer as a percentege rounded to 2 decimal places (e.g. 32.16).) Expected return % E(RA) E(RB) Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculetions. Enter your enswers os a percentage rounded to 2 decimal places (e.g.. 32.16).) You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 85, 91, 1.31, and 176, respectively Required: What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Portfolio beta A stock has a beta of 115, the expected return on the market is 10.9 percent, and the risk-free rate is 3.8 percent. Required: What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return Stock Y has a beta of 1.25 and an expected return of 12.6 percent Stock Z has a beta of 8 and an expected return of 99 percent Required: If the risk-free rate is 41 percent and the market risk premium is 7 percent, are these stocks correctly priced? Stock Y Stock Z (Click to select) (Click to select) You have a portfolio with the following: Expected Return 10% Stock Number of Shares Price $43 550 625 29 94 51 15 350 11 700 14 Required: What is the expected return of your portfolio? (Do not round intermediate calculetions. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return of the portfolio WxN

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