You have $33,000 to invest in a stock portfolio. Your choices are Stock X with an expected return…

You have $33,000 to invest in a stock portfolio. Your choices are Stock X with an expected return….

You have $33,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15.4 percent and Stock Y with an expected return of 8.9 percent. Your goal is to create a portfolio with an expected return of 13 percent. All money must be invested. How much will you invest in Stock X? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Jerilu Markets has a beta of 1.46. The risk-free rate of return is 2.98 percent and the market rate of return is 11.6 percent. What is the risk premium on this stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

You would like to combine a risky stock with a beta of 1.19 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return of 10.5 percent. Stock A has an expected return of 13.3 percent while Stock B is expected to return 6.3 percent. What is the portfolio weight of Stock A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

The market has an expected rate of return of 12.4 percent. The long-term government bond is expected to yield 4.8 percent and the U.S. Treasury bill is expected to yield 1.1 percent. The inflation rate is 3.2 percent. What is the market risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)


You have $33,000 to invest in a stock portfolio. Your choices are Stock X with an expected return…