own the portfolio of five stocks shown below: Human Genome Frozen Food Express Molecular Device Pandemic Busters Zoom Technologies Value $8,800 $ 10,300 $6,000 "ortfolio Beta tequired Return $ 8,400 $ 13,300 C Beta 0.93 1.37 1.23 ven the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is exp be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Ote: Do not round intermediate calculations and round your answers to 2 decimal places. % 1.27 0.58

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 7P
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You own the portfolio of five stocks shown below:
2
4
5
6
Human Genome
Frozen Food Express
Molecular Device
Pandemic Busters
Zoom Technologies
D
Value
$ 8,800
$ 10,300
$6,000
Portfolio Beta
Required Return
$ 8,400
$ 13,300
Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected
to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio?
Note: Do not round intermediate calculations and round your answers to 2 decimal places.
с
Beta
0.93
1.37
1.23
1.27
0.58
%
Transcribed Image Text:You own the portfolio of five stocks shown below: 2 4 5 6 Human Genome Frozen Food Express Molecular Device Pandemic Busters Zoom Technologies D Value $ 8,800 $ 10,300 $6,000 Portfolio Beta Required Return $ 8,400 $ 13,300 Given the amount owned of each stock and their respective betas, what is the beta of your portfolio? If the market return is expected to be 9.5 percent and the risk-free rate is 2 percent, what is the required rate of return for the portfolio? Note: Do not round intermediate calculations and round your answers to 2 decimal places. с Beta 0.93 1.37 1.23 1.27 0.58 %
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