Author Question: You hold a portfolio made up of the following stocks: Investment Value Beta Stock L 8,000 2.0 ... (Read 95 times)

ericka1

  • Hero Member
  • *****
  • Posts: 544
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

  • Sr. Member
  • ****
  • Posts: 354
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

For a complete list of videos, visit our video library