What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM131192446

You own $17,068 of Olympic Steel stock that has a beta of 2.80. You also own $17,068 of Rent-a-Center (beta = 2.08) and $16,064 of Lincoln Educational (beta = 0.66). What is the beta of your portfolio? (Do not round intermediate calculation and round your answer to 2 decimal places.) Portfolio beta

Reference no: EM131192446

Questions Cloud

How you plan to capitalize your corporation : Describe a business corporation that you might want to create. Indicate the specific provisions you would include into Articles of Incorporation including the number of directors in you corporation and how you plan to capitalize your corporation.
Celebrities raise money by issuing bonds to investors : With celebrity? bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of? 2009, EMI announced that it intended to securitize its back catalog ..
Describing teacher that you have encountered in your life : Free-write a page describing one "teacher" that you've encountered in your life so far. This can be a classroom teacher, or it can be someone who has taught you something valuable or helped you to see the world in a different way. One page minimum, b..
What rate of return are investors expecting : Mexican Motors’ market cap is 600 billion pesos. Next year’s free cash flow is 9.0 billion pesos. Security analysts are forecasting that free cash flow will grow by 8.0% per year for the next five years. Assume that the 8.0% growth rate is expected t..
What is the beta of your portfolio : You own $17,068 of Olympic Steel stock that has a beta of 2.80. You also own $17,068 of Rent-a-Center (beta = 2.08) and $16,064 of Lincoln Educational (beta = 0.66). What is the beta of your portfolio?
Decide to calculate the coefficient of determination : You are estimating the cost of optical sensors based on the resolution of the sensor. You decide to calculate the coefficient of determination (R2) as part of determining the goodness of fit of an equation. Using the preliminary calculations below, c..
Planning for some expected future expenses : You are planning for some expected future expenses. You expect to need to $2000 at the end of 2 years for moving expenses, $4000 at the end of 7 years for new kitchen appliances and $2500 at the end of 10 years for some remodeling.
Portfolio required return-funds required rate of return : Portfolio Required Return Suppose you manage a $4.91 million fund that consists of four stocks with the following investments: Stock Investment Beta A $460,000 1.50 B 500,000 -0.50 C 1,500,000 1.25 D 2,450,000 0.75 If the market's required rate of re..
What is the dollar price of the bond : Union Local School District has bonds outstanding with a coupon rate of 4.7 percent paid semiannually and 22 years to maturity. The yield to maturity on these bonds is 4.1 percent and the bonds have a par value of $10,000. What is the dollar price of..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the payback period-internal rate of return

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, a..

  What’s the bonds current yield-bonds value change

Assume that the company that you selected for the Module 1 SLP has a bond outstanding that matures in 20 years and has a coupon rate of 6.5%. The par value of the bond is $1,000. A bond matures in ten years and is currently selling for $1,125. The bo..

  Make the acquisition attractive at an interest rate

Enterprise car rental agency has a contract with PM Warranty, Inc. to do major repairs for $850 per car. The car rental agency estimates that it could repair its own cars for $320 each if it acquires a facility for $380000 now. A salvage value of $40..

  Decided to place equal year-end deposits

You need to accumulate $100,078 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 5 years. The savings account pays 4.24 percent per year, compounded annually. How much will each annual paym..

  Compared to chester by having a higher productivity index

A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Baldwin had a productivity index of 112% and that Chester had a productivity index of 103%. Using the l..

  What is your account equity at this stock price

You short sold 800 shares of stock at a price of $45 and an initial margin of 55 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call? What is your account equity at this stock price?

  With debt or with sale of shares

Benson, Athavale & Kemper (BAK) started a manufacturing facility in the last century. This firm, profitable since inception produces steering units for the automotive industry. The 3 founders have been averse to debt. The firm is in the 40% tax brack..

  Calculate the present value of the annuity streams

Calculate the present value of the following annuity streams: $7,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually.

  What is current price of oxygen optimization stock

Oxygen Optimization stock is expected to be priced at 86.87 dollars in 1 year and pay a dividend of 4.48 dollars in 1 year. The stock has a risk premium of 10.08 percent, the risk-free rate is 5.01 percent, and inflation is expected to be 3.76 percen..

  What was the real return on bonds

Over the past year, Getty Markets bonds, which have a 5 percent semiannual coupon, had a return of 7.47 percent. The rate of inflation was 4.1 percent over the year. What was the real return on these bonds?

  What is the new yield to maturity on the bond

You buy a bond for $994 that has a coupon rate of 6.1% and a 5-year maturity. A year later, the bond price is $1,184. What is the new yield to maturity on the bond? What is your rate of return over the year?

  What are the consequences of unethical behavior

Discuss in your own words what are ethics in corporate finance and what are the consequences of unethical behavior?

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