Problem 13.12 – Beta of Other Stock
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Find the beta for the other stock in the portfolio if the portfolio is evenly invested in two stocks and the risk-free asset.
Find the beta for the other stock in the portfolio if the portfolio is evenly invested in two stocks and the risk-free asset.
Find what the expected return on the stock will be.
Find the beta of the stock with the given information.
Find the expected return on the market with the given information.
Find the risk-free rate based on the given information.
Plot the portfolio expected returns and the portfolio betas, then find the slope of the line.
Given the betas and expected returns for Stock Y and Z, market risk premium, and risk-free rate… find out if the stock is priced correctly.
Find the expected return, the portfolio weights, and its beta with the given information of stock beta, expected return, and the risk-free asset.
With the given information, find the portfolio expected return, the variance, the standard deviation, expected risk premium, the approximate and exact expected real returns, and the approximate and exact expected real risk premiums.
Given the information from the table on Stock A, B, and C… fill in the rest of the table.