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62.
You are comparing stock A to stock B. Given the following information, what
is the difference in the expected returns of these two securities?
63.
Jerilu Markets has a beta of 1.09. The risk-free rate of return is 2.75 percent
and the market rate of return is 9.80 percent. What is the risk premium on
this stock?
64.
If the economy is normal, Charleston Freight stock is expected to return
16.5 percent. If the economy falls into a recession, the stock's return is
projected at a negative 11.6 percent. The probability of a normal economy is
80 percent while the probability of a recession is 20 percent. What is the
variance of the returns on this stock?
65.
The rate of return on the common stock of Lancaster Woolens is expected
to be 21 percent in a boom economy, 11 percent in a normal economy, and
only 3 percent in a recessionary economy. The probabilities of these
economic states are 10 percent for a boom, 70 percent for a normal
economy, and 20 percent for a recession. What is the variance of the
returns on this common stock?
66.
The returns on the common stock of New Image Products are quite cyclical.
In a boom economy, the stock is expected to return 32 percent in
comparison to 14 percent in a normal economy and a negative 28 percent in
a recessionary period. The probability of a recession is 25 percent while the
probability of a boom is 20 percent. What is the standard deviation of the
returns on this stock?
67.
What is the standard deviation of the returns on a stock given the following
information?
68.
You have a portfolio consisting solely of stock A and stock B. The portfolio
has an expected return of 9.8 percent. Stock A has an expected return of
11.4 percent while stock B is expected to return 6.4 percent. What is the
portfolio weight of stock A?
69.
You own the following portfolio of stocks. What is the portfolio weight of
stock C?
70.
You own a portfolio with the following expected returns given the various
states of the economy. What is the overall portfolio expected return?
71.
What is the expected return on a portfolio which is invested 25 percent in
stock A, 55 percent in stock B, and the remainder in stock C?
72.
What is the expected return on this portfolio?
73.
What is the expected return on a portfolio that is equally weighted between
stocks K and L given the following information?
74.
What is the expected return on a portfolio comprised of $6,200 of stock M
and $4,500 of stock N if the economy enjoys a boom period?
75.
What is the variance of the returns on a portfolio that is invested 60 percent
in stock S and 40 percent in stock T?
76.
What is the variance of the returns on a portfolio comprised of $5,400 of
stock G and $6,600 of stock H?
77.
What is the standard deviation of the returns on a portfolio that is invested
52 percent in stock Q and 48 percent in stock R?
78.
What is the standard deviation of the returns on a $30,000 portfolio which
consists of stocks S and T? Stock S is valued at $21,000.
79.
What is the standard deviation of the returns on a portfolio that is invested
in stocks A, B, and C? Twenty five percent of the portfolio is invested in
stock A and 40 percent is invested in stock C.
80.
What is the beta of the following portfolio?
81.
Your portfolio is comprised of 40 percent of stock X, 15 percent of stock Y,
and 45 percent of stock Z. Stock X has a beta of 1.16, stock Y has a beta of
1.47, and stock Z has a beta of 0.42. What is the beta of your portfolio?
