Question
Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the expected return of your portfolio, if PG's beta is
Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the expected return of your portfolio, if PG's beta is 0.8, HD's beta is 0.3, the risk free rate is 3.8% and the market's expected return is 10.8%? Assume that the CAPM holds.
NFLX's standard deviation is 28% and the market's standard deviation is 25%. The correlation between the returns of NFLX and the market is -0.67. What percent of NFLX's variance is systematic? Provide your answer in percent, rounded to two decimals, omitting the % sign.
Based on the CAPM, what is the expected return to a stock with a beta of 0.7? Risk free T-Bills earn a 2% return and the market's expected return is 12.6%. Provide your answer in percent, rounded to two decimals, omitting the % sign.
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