Finance
posted by matt .
Consider the following two securities X and Y
X y
Return 20.0% Return 10.0%
Standard Deviation 20.0% Standard Dev 30%
Beta 1.50 Beta 1.0
Riskfree asset
Return 5.0%
Using the data from the table, what is the portfolio expected return and the portfolio beta if you invest 35 percent in X, 45 percent in Y, and 20 percent in the riskfree asset?
Respond to this Question
Similar Questions

Finance Class Help (very very urgent) need asap
K this is what I have so far. I am wondering if i did the CAPM right and if that is all i need for that part and then I need to know how to do the Constant Growth Model. When you do yours, assume the riskfree return as 6% Assume the … 
mba
Analyze the following portfolios performance using Jensen index, Treynor index and Sharpe index versus the market: Observed Rate of Return Beta (β) Residual Variance Magic fund 15% 1.5 0.02 Shanti fund 10% 0.5 0.00 Riskfree rate … 
MBA
Analyze the following portfolios performance using Jensen index, Treynor index and Sharpe index versus the market: Observed Rate of Return Beta (β) Residual Variance Magic fund 15% 1.5 0.02 Shanti fund 10% 0.5 0.00 Riskfree rate … 
Finance  Required Return from a Beta
Hi, I need to learn how to explain and solve the following Finance problem. I don't understand this at all!!!, please show all solutions... Calculate the required return on an asset that has a beta of 1.25, when the expected return … 
Finance
IBM's common stock has a beta of 0.85. If the expected riskfree return is 4.5% and the market risk premium is 7%. a) Calculate IBM’s required rate of return (10pts) b) Assume IBM’s actual realized return is 15%. Calculate its … 
finance
The expected return on the market is 12% and the risk free rate is 7%. The standard deviation of the return on the market is 15%. Ones investor creates a portfolio on the efficient frontier with an expected return of 10%. Another creates … 
Finance
Aset P has a beta of 0.9. The riskfree rate of return is 8%, while the return on the S&P 500 is 14%. Asset P's required rate of return is: 
FINANCIAL ACCOUNTING
A portfolio manager is managing a $10 million portfolio. Currently the portfolio is invested in the following manner: Investment Dollar Amount Invested Beta Electric Utility $2 million 0.6 Cable Company $3 million 0.8 Real Estate Development … 
finance
Based on the following information, calculate the required return based on the CAPM: Risk Free Rate = 3.5% Market Return =10% Beta = 1.08 
math
You are thinking of adding one of two investments to an already well diversified portfolio. Security A with expected return of 12%, standard deviation of 20.9%, and beta of 0.8. Security B with expected return of 12%, standard deviation …