This topic contains a solution. Click here to go to the answer

Author Question: If Geek Computer has a beta of .8, the return from Treasury bills is 3 and the return from the ... (Read 246 times)

fahad

  • Hero Member
  • *****
  • Posts: 570
If Geek Computer has a beta of .8, the return from Treasury bills is 3 and the return from the market portfolio is 20, what is the required return from Geek stock?
 
  A) 16.6
  B) 15.7
  C) 22.8
  D) 20.0
  E) 17.5

Question 2

Assume that both Apple and Yahoo plot on the SML. Apple has a beta of 2.6 and an expected return of 21.2. Yahoo has a beta of 0.90 and an expected return of 9.3.
 
  The expected return on the market portfolio is 10and the risk-free rate is 3. If you wish to hold a portfolio consisting of Apple and Yahoo and have a portfolio beta equal to 1.5, what proportion of the portfolio must be in Apple? What is the expected return on the portfolio?
 
   Apple Yahoo Market Portfolio Risk-free Asset
  Beta 2.6 0.9 1.0 0.0
  Expected Return 21.2 9.3 10.0 3.0
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mjbamaung

  • Sr. Member
  • ****
  • Posts: 343
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly




fahad

  • Member
  • Posts: 570
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

For a complete list of videos, visit our video library