Over a certain period, large-company stocks had an average r…
Over a certain period, large-company stocks had an average return of 14.22 percent, the average risk-free rate was 2.76 percent, and small-company stocks averaged 22.84 percent. What was the risk premium of small-company stocks for this period?
Read DetailsYou wish to form a portfolio as risky as the overall market…
You wish to form a portfolio as risky as the overall market by investing in a risky stock and a (risk-free) U.S. T-bill. What percentage of your investment should be in (i.e., what is the portfolio weight of) the risky stock if its beta is 2.06?
Read DetailsYou have a portfolio that is 39 percent invested in Stock R,…
You have a portfolio that is 39 percent invested in Stock R, 40 percent invested in Stock S, with the remainder in Stock T. The expected returns of these stocks are 15.8 percent, 12.8 percent, and 16.4 percent, respectively. What is the expected return on the portfolio?
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