# BUSN 379 Week 5 Homework Chapter 11 (4, 7, 17, and 29) LATEST

**6**Times. Tutorial Rating:

## This Tutorial contains following Attachments:

- BUSN 379 Week 5 Homework Chapter 11 (4, 7, 17, and 29).docx
- BUSN 379 Week 5 Homework Chapter 11 (4, 7, 17, and 29).xlsx

**BUSN 379 Week 5 Homework Chapter 11 (4, 7, 17, and 29) NEW**

**WEEK 5**

**Chapter 11: 4, 7, 17, and 29**

**Problem 4**

**Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If your goal is to create a portfolio with an expected return of 12.4 percent, how much money will you invest in Stock X? In Stock Y?**

**Problem 7**

**7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks.**

**Problem 17**

**Using CAPM. A stock has a beta of 1.15 and an expected return of 10.4 percent. A risk-free asset currently earns 3.8 percent.**

**a. What is the expected return on a portfolio that is equally invested in the two assets?**

**b. If a portfolio of the two assets has a beta of .7, what are the portfolio weights?**

**c. If a portfolio of the two assets has an expected return of 9 percent, what is its beta?**

**d. If a portfolio of the two assets has a beta of 2.3, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain.**

**Problem 29**

**29. SMLSuppose you observe the following situation:**

**a. Calculate the expected return on each stock.**

**b. Assuming the capital asset pricing model holds and stock A’s beta is greater than stock B’s beta by .25, what is the expected market risk premium?**

## Write a review

**Your Name:**

**Your Review:**Note: HTML is not translated!

A B C D F

**Enter the code in the box below:**