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tshelb011. You have a portfolio consisting of 50% AT&T stock, 35% Duke Power stock, and 15% IBM stock. AT&T stock has a beta of .9; Duke has a beta of .80; IBM has a beta of 1.2. You know that T-bills are returning 4% and the market risk premium (MRP) is 10%. Find the return of your portfolio.
A. | 13.10% | |
B. | 9.46% | |
C. | 13.67% |
2. Find the beta of a portfolio that is 51% Ajax and the rest in Rex. Ajax has a beta of 3.4 and Rex has a beta of 2.7. Round your answer to the nearest hundredth (so x.xx as an answer).
3. Which of the following is an example of market risk?
A. | Dupont gets a grant to research cold cures | |
B. | The Federal Government raises the tax rate by 15% | |
C. | GM is sued for defects in its new car line |
11 years ago
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