You own a $222,000,000 portfolio that is invested in Stocks A and B The portfolio beta is equal to the market beta Stock A has an expected return of 18 7 percent and has a beta of 1 42 Stock B has a beta of 0 88 What is the value of your investment in Stock A a) $38,600 b) $42,333 c) $44,500 d) $49...

d 49333 Market Beta 1 by definition Let A B be the amount i ...

You own a $222,000,000 portfolio that is invested in Stocks A and B. The portfolio beta is

Question:

You own a $222,000,000 that is invested in A and B. The beta is equal to the market beta. Stock A has an of 18.7 percent and has a beta of 1.42. Stock B has a beta of 0.88. What is the value of your investment in Stock A?
a) $38,600
b) $42,333
c) $44,500
d) $49,333
e) $47,200
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...