Corporate finance

11. value: 6.25 points

You own a stock portfolio invested 35 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.92, 1.25, 1.09, and 1.27, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))

 

  Portfolio beta

12. value: 6.25 points

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.47 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))

 

  Portfolio beta

13. value: 6.25 points

A stock has a beta of 1.22, the expected return on the market is 12 percent, and the risk-free rate is 4.0 percent. What must the expected return on this stock be? (Round your answer to 2 decimal places. (e.g., 32.16))
  Expected return %

14. value: 6.25 points

A stock has an expected return of 13.5 percent, its beta is 1.45, and the risk-free rate is 6.5 percent. What must the expected return on the market be? (Round your answer to 2 decimal places. (e.g., 32.16))

 

  Market expected return %

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