An investor put 40% of her money in stock a

Assignment Help Finance Basics
Reference no: EM131013724

An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%, what's the investor's expected return? 

Reference no: EM131013724

Questions Cloud

Relationship between subjective wellbeing and work : Prepare a 8- to 10-slide Microsoft PowerPoint presentation that illustrates the relationship between subjective wellbeing and the following topics: Physical health, Mental health and Work
Investment alternatives : A company faces the following investment alternatives Project          Capital Investment.         Cash Flows from Investment
College sophomore majoring in business : Lauren is a college sophomore majoring in business. This semester Lauren is taking courses in accounting, economics, management information systems, public speaking, and statistics. The sizes of these classes are, respectively, 340, 60, 35, 70, and 7..
Cash amount receivables inventory total current assets : The following is from Harrlson Incs financial statements. Sales (all on credit)were $28.50 millions for 2013 Sales to total assets 1.90 times Total Debt to Total Assets 35% Current Ratio 2.50 times Inventory Turnover 20 days Average Collection period..
An investor put 40% of her money in stock a : An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%, what's the investor's expected return?
What''s the expected return of the portfolio : The stock of Alpha Company has an expected return of 0.10 and a standard deviation of 0.25. The stock of Gamma Company has an expected return of 0.16 and a standard deviation of 0.40. The correlation coefficient between the two stock's return is 0.2.
Can you please let me know how you got the answer : Preferred Stock, 10%, $100 Par Value, 10,000 shares authorized, 1,000 issued, and outstanding$ 100,000 Additional Paid In Capital ½ Preferred Stock
Discuss the bounce-diagram technique of keeping track : Discuss the bounce-diagram technique of keeping track of the bouncing back and forth of the transient waves on a transmission line for a pulse voltage source.
Difference between return and yield-to-maturity of a bond : Explain the difference between return and yield-to-maturity of a bond. Please be precise and give examples if necessary.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Assume that the value of diagnostic equipment suddenly

1.which of the following statements about the organization of the balance sheet is most correct?a. the balance sheet

  Find the value of each of the bonds when required interest

pacific homecare has three bond issues outstanding. all three bonds pay 100 in annual interest plus 1000 at maturity.

  Determine the factors that the manager of a financial

question 1asuggest which factors have the most significant impact on a financial-service institutions decision

  What would the weights used in the calculations

What would the weights used in the calculations of Accessory WACC for comon stock and preferred stock and bonds, respectively?

  Assume you are an analyst evaluating mesco company the

assume you are an analyst evaluating mesco company. the following data are available in your financial analysis unless

  If a corporation sold x units of product for y each and had

if a corporation sold x units of product for y each and had m in total fixed and l in total variable costs write

  Find the amount of interest earned in the fifth year

Assume that delta t = 1/[10(1 + t)^2] and A(0) = 100. Find the amount of interest earned in the fifth year.

  Prevent another such scenario in the future

During the summer and fall of 2008, the U.S. financial system and financial systems around the world appeared to be on the verge of collapse. How did we get into this condition? What did we do to get out of it? How can we prevent another such ..

  Calculate the conversion value of each bond

Hilton common stock is trading (on the NYSE) at $24.05 per share and the bonds are trading at $1,475.

  What is the incremental free cash flow for year one

what is the incremental free cash flow for year one? A)22,305 B)18,875 C)24,220 D)19,985 Please provide explanation for your answers.

  You found your dream house it will cost you 175000 and you

1.your car loan requires payments of 200 per month for the first year and payments of 400 per month during the second

  Mortgage investment fraud

Write 1,050-word proposal about a problem identified in the case study that requires intervention

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd