Business, 08.10.2019 20:20 F00Dislife
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. you are in the process of buying 1,000 shares of alpha corp at $10 a share and adding it to your portfolio. alpha has an expected return of 21.5% and a beta of 1.70. the total value of your current portfolio is $90,000. what will the expected return and beta on the portfolio be after the purchase of the alpha stock? do not round your intermediate calculations.
Answers: 2
Business, 21.06.2019 12:30
Which of the following is an example of an unsought good? a. cameron purchases a new bike. b. jordan buys paper towels. c. taylor buys cupcakes from her favorite bakery. d. riley buys new windshield wipers for her car. d
Answers: 1
Business, 22.06.2019 05:10
The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?
Answers: 1
Business, 22.06.2019 08:00
3. describe the purpose of the sec. (1-4 sentences. 2.0 points)
Answers: 3
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of...
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