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Bas_tet [7]
3 years ago
6

tock J has a beta of 1.38 and an expected return of 14.06 percent, while Stock K has a beta of .93 and an expected return of 11

percent. You want a portfolio with the same risk as the market. a.What is the portfolio weight of each stock? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)b.What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Vikki [24]3 years ago
3 0

Answer:

By definition, we know that Beta for market Portfolio is 1. By this, we need weighted average of J and K Beta as 1

1.38x + 0.93(1-x) = 1

1.38x + 0.93-0.93x = 1

0.45x = 0.07

x = 0.07/0.45

x = 0.16

So, we need 0.16 of J and 0.84 of K.

Weighted Average of J = 0.16 and K = 0.84.

Further Expected return of portfolio will be:

    Weight  Expected Return  Expected Return of Portfolio

J    0.16                 14.06                        2.25

K   0.84                   11                            <u>9.24</u>

Total Portfolio Expected Return        <u>11.49</u>

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kaheart [24]

Answer:

BUSINESS OPERATIONS AND  ORGANIZATION

Explanation:

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Usually, Business Plan contains in 8 parts:

1.Executive summary

2. Background

3. Products and services

4. Markets and clients

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We can include there: location and premises, marketing and selling methodology, manufacturing,  distribution, order processing/inventory control, company structure/organization, project management and management information systems/reporting.

6. Human resources

7. Legal framework, and environmental and social factors

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5 0
3 years ago
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Viktor [21]

Answer:

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Explanation:

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+Income: 3,250

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6 0
3 years ago
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Allushta [10]

Answer:

both statements are false

Explanation:

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also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.

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7 0
3 years ago
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KiRa [710]

Answer:

B is the answer

Explanation:

8 0
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Wittaler [7]
This is correct, thank u so much
8 0
4 years ago
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