Questions from General Investment

Q: Calculate the volatility of a portfolio of 35 percent Roll and 65

Calculate the volatility of a portfolio of 35 percent Roll and 65 percent Ross by filling in the following table: Data for Question 7:

Q: A stock has an expected return of 13.2 percent,

A stock has an expected return of 13.2 percent, the risk-free rate is 3.5 percent, and the market risk premium is 7.5 percent. What must the beta of this stock be?

Q: A stock has an expected return of 8.0 percent,

A stock has an expected return of 8.0 percent, its beta is 0.60, and the risk-free rate is 3 percent. What must the expected return on the market be?

Q: A stock has an expected return of 12 percent and a beta

A stock has an expected return of 12 percent and a beta of 1.4, and the expected return on the market is 10 percent. What must the risk-free rate be?

Q: A stock has a beta of 0.8 and an expected

A stock has a beta of 0.8 and an expected return of 11 percent. If the risk-free rate is 4.5 percent, what is the market risk premium?

Q: You own a stock portfolio invested 10 percent in stock Q,

You own a stock portfolio invested 10 percent in stock Q, 25 percent in stock R, 50 percent in stock S, and 15 percent in stock T. The betas for these four stocks are 1.4, 0.6, 1.5, and 0.9, respectiv...

Q: You own 400 shares of stock A at a price of $

You own 400 shares of stock A at a price of $60 per share, 500 shares of stock B at $85 per share, and 900 shares of stock C at $25 per share. The betas for the stocks are 0.8, 1.2, and 0.7, respectiv...

Q: You own a portfolio equally invested in a risk-free asset

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.20 and the total portfolio is exactly as risky as the market, what must the beta be for t...

Q: A stock has a beta of 0.85, the expected

A stock has a beta of 0.85, the expected return on the market is 11 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be?

Q: A share of stock sells for $35 today. The beta

A share of stock sells for $35 today. The beta of the stock is 1.2 and the expected return on the market is 12 percent. The stock is expected to pay a dividend of $0.80 in one year. If the risk-free r...