Calculate your portfolios new beta

Assignment Help Financial Management
Reference no: EM131190761

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.25. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.15. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131190761

Questions Cloud

Compare the progress from 1998 to 2003 of students : Compare the progress from 1998 to 2003 of students in your state with the progress of students in one other state.
Discomfort of the laborer : Why is labor measured here by labor-time, and not by counting how manymovements were made, or by the heart rate of the laborer (as in an exercise room), or by the discomfort of the laborer?
What types of research back up these recommendations : Mr. Lowell wants to adopt a caring model at St. Louis Medical Center and asks you to find the latest information on patient and family engagement. What does the literature say about patient and family engagement (Hint: use that phrase in your sear..
Quantity of abstractlabor necessary to produce : Is the magnitude of value of a commodity determined by the quantity of abstractlabor necessary to produce it, or by the quantity of other commodities against whichit can be exchanged?
Calculate your portfolios new beta : Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.25. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 1.15. C..
The state provide an adequate level of school funding : Many state constitutions explicitly require that the state provide an "adequate" level of school funding.- How might raising this level of "adequacy" actually lead to reduced overall levels of educational spending?
Equipment that will be depreciated straight line to zero : Kelly Inc. is considering a project requiring a $300,000 investment in equipment that will be depreciated straight line to zero at the end of the 4-year project. At the end of the project, Kelly, Inc. expects to receive sales proceeds of $50,000 for ..
What specific skills and knowledge that you gained : What specific skills and knowledge that you gained through this experience will be most important as you take on your future roles in nursing? Describe a concrete way in which you anticipate using these skills and knowledge.
Is bitcoins a fiat or a commodity : Is Bitcoins a Fiat or a commodity? Fiat money is money that is a legal claim as it attains all its properties from the law. It is just like a purchase voucher that can be used as an exchange for goods and services and its purchasing power varies...

Reviews

Write a Review

Financial Management Questions & Answers

  What is its unlevered beta

Bailey and Sons has a levered beta of 1.4, its capital structure consists of 50% debt and the rest is in equity, and its tax rate is 40%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?

  What is the expected year-end dividend

Francis Inc.'s stock has a required rate of return of 12.50%, and it sells for $57.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?

  Principle and interest portions of the first payment

A $200,000 mortgage with a 30 year term, and a 5% annual interest rate requires a monthly payment of $1073.64. What are the principle and interest portions of the first payment? What are the principle and interest portions of the second payment?

  What was cash flow to stockholders-operating cash flow

Mitchell Industries had the following operating results for 2014: sales = $29,800; cost of goods sold = $19,960; depreciation expense = $5,420; interest expense = $2,790; dividends paid = $1,650. At the beginning of the year, net fixed assets were $1..

  What is effective rate by which dividend has been increased

If Sanchez declares and pays a 100 percent stock dividend and then pays an annual cash dividend of $1.10 per share, what is the effective rate by which the dividend has been increased?

  Discuss the ethical aspects and repercussions from the point

Pick one product from "New Monsanto" (Round-up) and discuss the ethical aspects and repercussions from the point of view of at least 3 different types of company stakeholders. Environment, farmers, community.

  Discussion participation scoring guide

The Balance Sheet Resources scoring guide icon Discussion Participation Scoring Guide. Place yourself in the role of one of the following stakeholders in a company: an investor, a creditor, or a manager. Why is the balance sheet important in order to..

  Receiving a fixed rate and paying a libor floating rate

You want to estimate the Fixed Rate for a $100M Notional, 3 year swap that has annual payments. You will be receiving a fixed rate and paying a LIBOR floating rate. The Spot rates for the next three years, based on the yield curve right now, are 6.5%..

  Repaid in ten annual instalments

A $100 loan is repaid in ten annual instalments, commencing one year after the date of the loan. Each payment for years 1 through 5 is twice the payment 6 through 10. The effective annual interest rate is 4%. In which of the following ranges is the o..

  What is the firm after-tax cost of debt

5 years ago, Barton Industries issued 35-year noncallable, semiannual bonds with a $2,000 face value and a 6% coupon, semiannual payment ($60 payment every 6 months). the bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what ..

  Pays current dividend and is expected to grow

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 7% thereafter. If the required return for Deployment Specialists is 12.0%, what is the intrinsic value of Deployment Specialists st..

  A trader enters into a short forward contract

A trader enters into a short forward contract on 200 million yen. The forward exchange rate is $0.0090 per yen. How much does the trader gain or lose if the exchange rate at the end of the contract is (a) $0.0084 per yen; (b) $0.0101 per yen?

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