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Author Question: You are looking over your brother's portfolio. In his portfolio, he is holding one long position and ... (Read 58 times)

bcretired

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Question 1

You are considering investing in Stock ABC. This stock has an expected return of 14%, the risk free rate is 5%, and the market risk premium (or Treynor Index) is 8%. What is the beta of Stock ABC?
◦ 0.950
◦ 1.125
◦ 1.250
◦ 1.400
◦ 1.500

Question 2

You are looking over your brother's portfolio. In his portfolio, he is holding one long position and one short position. Jimmy, your brother, bought 1,600 shares of Sunny Inc. each for $55. He sold 1,000 shares of Rainy Ltd. for $50 a share. Calculate the portfolio weight on the Rainy Ltd. position.
◦ -1.32
◦ -0.76
◦ -0.50
◦ 0.24
◦ 0.30


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Marked as best answer by bcretired on Apr 25, 2021

guyanai

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bcretired

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Reply 2 on: Apr 25, 2021
Excellent


daiying98

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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