Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
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Problem 11.01 – What are the portfolio weights
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Determine the portfolio weights for two stocks given two stock prices and shares.
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Problem 11.02 – You own a portfolio that has invested in Stock A invested in Stock B.
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Determine the expected return on the portfolio of stocks A and B.
Problem 11.03 – You own a portfolio that is invested in stocks X, Y, and Z.
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Determine the expected return on the portfolio given the percent invested in stocks X, Y, and Z.
Problem 11.04 – You have a fixed amount to invest in a stock portfolio. How much in X and Y?
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
What is the investment in stock X and what is the investment in stock Y?
Problem 11.06 – Expected Return given 3 states
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Given a table filled with probabilities for a single stock, and rates of return under three scenarios, compute the expected return.
Problem 11.07 – Recession Normal Boom
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Calculate the expected return and standard deviation of two stocks given three states of the economy, recession, normal, and boom.
Problem 11.09 – Expected return on portfolio and variance given stocks A, B, and C.
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
You are provided with two states of the economy, and three stocks, A, B, and C. You are asked to calculate the expected return of an equally weighted portfolio of the three stocks, and for the second part, you’re asked to compute the portfolio’s variance.
Problem 11.11 – Portfolio Beta
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
You are given stocks Q, R, S, and T and are asked to determine the portfolio beta.
Problem 11.13 – What must the expected return on this stock be?
Essentials of Corporate Finance 10e by Ross, Westerfield, and Jordan
Given a beta, the expected return on the market, and the risk-free rate, you are asked to compute the expected return on the stock.