What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM131184966

You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)

Reference no: EM131184966

Questions Cloud

Share price with the deferred dividend to the share price : A company decides to invest $250 million cash in one-year government bills yielding 4% and use the proceeds from the sale of the bills to pay a higher dividend next year. What would be the company's share price? Compare the share price with the defer..
Fixed rate mortgage with monthly payments : You are buying a house and will borrow $190,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.25 percent. Alternatively, she tells you that you can “buy d..
Bonds make semiannual payments-preferred stock : Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 35 percent. Debt: 10,000 8.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 96.5 percent of par; the bonds make semiannual payme..
What would the risk-free rate have to be for the two stocks : Stock Y has a beta of .98 and an expected return of 10.30 percent. Stock Z has a beta of .80 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
What is the beta of your portfolio : You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio?
Create portfolio that has an expected return : You have $112,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12 percent and that has only 76 percent of the risk of..
Signal ineffective or problematic governance practices : Over the past few years, the number of start-up companies attracted to either doing business themselves in the cloud, or specifically creating applications for others to use in the cloud, has grown significantly. What characteristics of the board of ..
Either doing business themselves in the cloud : Over the past few years, the number of start-up companies attracted to either doing business themselves in the cloud, or specifically creating applications for others to use in the cloud, has grown significantly. one of your new board members is very..
Find line item listed on either the income statement : Find a line item listed on either the income statement or balance sheet that would indicate an adjusting entry was necessary and describe the entry. For under armour And What do you think the effect would be on the company's financial statements if t..

Reviews

Write a Review

Financial Management Questions & Answers

  Opportunity cost of capital for this type of equipment

One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $155,000 today. Your company tax rate is 45%, and the opportunity..

  Example of an incremental cash flow related to appliances

Frank's is a furniture store that is considering adding appliances to its offerings. Which one of the following is the best example of an incremental cash flow related to the appliances?

  Absolute return advantage over other form of investment

Historically, both investment managers and investors were considering Hedge Fund Investment as one which has an “Absolute Return” advantage over other form of investment. But the 2007-09 financial crisis proved this claim as not sustainable. Please d..

  Decision influence ultimate amount of cash you will collect

It is a common fact that many lottery winners are “broke” sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount ..

  Considered a financially leveraged firm

Which of the following is considered a financially leveraged firm?

  Statement relevant cash flows

In a financial decision, what is meant by the statement “Relevant Cash Flows”? How do you assure cash flows are relevant?

  Two different conveyor belt systems

BOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $272,000, has a four-year life, and requires $83,000 in pretax annual operating costs. System B costs $384,000, has a six-year life, and requires $77,00..

  Analyzing proposed project-sensitivity analysis

Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a..

  Zero coupon bond with face value

A zero coupon bond with a face value of $1,000 is issued with an initial price of $565.01. The bond matures in 20 years. What is the implicit interest, in dollars, for the first year of the bond's life?

  Annual interest rate to start your new business

Your bank offers to lend you $230,000 at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much of the principal would you be paying back during the 3rd year?

  Shares of common stock outstanding with a beta

Busters Ice Cream has 2,500 bonds outstanding that are selling for $1,020 each and yielding a pretax 7.2 percent. There 60,000 shares of common stock outstanding with a beta of 1.3 and a market price of $56 a share. The risk-free rate is 4 percent, t..

  Assume callable corporate bond with face value

Calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market price of $1,223.92, and a call premium of 6%. Assume also that the bond has 24 years to go until it matures, but it ..

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