How the beta of a portfolio can equal the market beta

Reference no: EM13268058

Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security.

Reference no: EM13268058

Questions Cloud

Role of u.s. attorneys office : What charges do you think that the drug dealer should have and what is the role of the judiciary in this case? The role of U.S. Attorney's office? The role of your office?

What role does the weighted average cost of capital play : What role does the weighted average cost of capital play when determining a project's cost of capital?

Calculate armature current and total losses in machine : Calculate the armature current, total losses in the machine, and the I^2R losses in the armature. Help would be greatly appreciated as my calculations for Armature Current Ia is in my mind way too high, 480A. Then calculate the losses in the armat..

What is the longest radiation wavelegth : It is possible to use electromagnetic radiation to ionize atoms. To do so, the atoms must absorb the radiation, What is the longest radiation wavelegth

How the beta of a portfolio can equal the market beta : Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security.

What is mom return on assets : Mind-Over-Matter (MOM) Tutors has a total assets turnover equal to 3.0x, a net profit margin equal to 4 percent, and a return on equity (ROE) equal to 15 percent.

What is the minimum thickness of the plexiglass : in a Tom's double-slit experiment using 549nm light, a thin piece of plexiglass of refractive index 1.53 covers one of the slits. what is the minimum thickness of the plexiglass

What is the yield to maturity : The Fishing Pier has 6.60 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,047. What is the yield to maturity?

Explain how electronic commerce is impacting trade : Describe and explain how electronic commerce is impacting trade, both domestic and international.

User Account

All Pages