A stock has a beta of 1.05 and an expected return of 11 percent. A risk-free asset currently earns 2.4 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. If a portfolio of the two assets has a beta of. 63, what are the portfolio weights?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A stock has a beta of 1.05 and an expected return of 11 percent. A risk-free asset currently earns 2.4 percent. a. What is the expected ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Ecco Company sold $147,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price.
Answers (1)
Cooper Industries, Inc. began 2012 with retained earnings of $25.32 million. During the year it paid four quarterly dividends of $0.35 per share to 2.75 million common stockholders.
Answers (1)
True or false: Financial experts recommend that you compare at least several different financial institutions in your area and find the one that best meets your needs.
Answers (2)
Carlos manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new
Answers (1)
Suppose a new off-campus university apartment complex could rent its rooms on the open market for $900 a month. If, instead, the university chooses to cap the price of rooms to $500 a month for students, the result would be that
Answers (1)
New Questions in Business
Ed moura has 60000 invested in stocks paying 7%. how much additional money should he invest in certificates of deposit paying 3% so that the average retrun on the two investments is 4%.
Answers (1)
On January 1, Whispering Winds Corp. had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr.
Answers (1)
On a 3-day fishing trip, 4 adults consumed food costing $60. for the same costs per person per day, what would be the cost of food consumed by 7 adults during a 5-day fishing trip?
Answers (1)
Mona and her friends Jack and Bobby, all United States citizens, want to open a nail salon in Tennessee. They would all like to avoid personal liability for debts of the business and for wrongful acts of each other.
Answers (1)
Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly.
Answers (1)