321.

425.1

1.Stock A has had the following returns over the last 3 years:

1 2 3
10% 16% 19%
  1. What is stock A's expected return and standard deviation?

     

  2. If the expected return on the market is 12% and the risk-free rate is 3%, what is Stock A's beta?
  3. You are considering putting 50% of your money in A and 50% of your money in either B or C. Which one should you pick and what will the beta of your portfolio be?
  Beta Expected Return
Stock B 1.2 15%
Stock C 1.5 12%

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