Author Question: You hold a portfolio made up of the following stocks: Investment Value Beta Stock L 8,000 2.0 ... (Read 58 times)

ericka1

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You hold a portfolio made up of the following stocks:
 
  Investment Value Beta
  Stock L 8,000 2.0
  Stock M 18,000 1.5
  Stock N 14,000 .4
  If the market's expected return is 14, and the risk-free rate of return is 5, what is the expected
  return of the portfolio?
  A) 17.010 B) 16.700 C) 14.698 D) 15.935

Question 2

Consider the following assets: I. Treasury Strips, II. Coupon Treasury bonds, III. growth stocks, and IV. medium quality corporate bonds.
 
  A cautious investor with high-priority future goals, but who does not need current income, would prefer
  A)
 
  I.
  B)
 
  II.
  C)
 
  III.
  D)
 
  IV.


millet

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Answer to Question 1

D

Answer to Question 2

A



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