A friend brags that she expects to earn a return of 10.25 on her ...

[jayhills49]

A friend brags that she expects to earn a return of 10.25 on her portfolio with a beta of 0.825.
 
  Can you match her performance with Stock X (12 return and a beta of 1.1 ) and the risk free asset that earns a 5 return? With what portfolio weights?
  A) Yes, 0.75 Stock X and 0.25 Risk Free Asset
  B) Yes, 0.25 Stock X and 0.75 Risk Free Asset
  C) Yes, 0.5 Stock X and 0.5 Risk Free Asset
  D) No

Question 2

Your uncle offers you a stream of payments whose present value, today, is 62,000. There are 15 equal annual payments in the stream. The first payment in the stream occurs seven years from today.
 
  If the interest rate is 14, then what is the value of each payment?
  A) 22,156.40
  B) 19,435.43
  C) 25,258.29
  D) 28,794.45
  E) 10,094.16

[amandalm]

Answer to Question 1

A

Answer to Question 2

A

[jayhills49]

TY

[amandalm]

Happy to Help