You own a stock portfolio invested 30 percent in Stock Q, 20 percent in Stock R, 5 percent in Stock S, and 45 percent in Stock T. The betas for these four stocks are 0.77, 1.39, 0.79, and 1.48, respectively. The portfolio beta is ………..?
(Round your answer to 2 decimal places. (e.g., 32.16))
Your portfolio is equally weighted among 3 assets: a risk-free asset, stock A, and stock X. If stock A has a beta of 1.5 and the total portfolio is equally as risky as the market, the beta for stock X is ……..? Note that the portfolio weights are equal to each other for all members of an equally-weighted portfolio. Therefore, in an equally-weighted, 3-asset portfolio, each asset has a weight of 1/3.
(Round your answer to 2 decimal places. (e.g., 32.16))
A stock has a beta of 1.1, the expected return on the market is 16 percent, and the risk-free rate is 8.8 percent. The expected return on this stock must be …….?percent. Note that the expected return on the market is given.
(Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
A stock has an expected return of 13 percent, the risk-free rate is 4.55 percent, and the market risk premium is 7 percent. The beta of this stock must be …..? Note that the market risk premium is given.
(Round your answer to 2 decimal places. (e.g., 32.16))