What is the beta of your portfolio

Assignment Help Financial Management

Reference no: EM131307996

Portfolio Beta You own $20,000 of City Steel stock that has a beta of 3.30. You also own $37,500 of Rent-N-Co (beta = 1.75) and $20,500 of Lincoln Corporation (beta = -.85). What is the beta of your portfolio?

4.20

1.46

4.91

1.00

Reference no: EM131307996

Questions Cloud

What is the market value of the bond : Knight, Inc., has issued a three-year bond that pays a coupon rate of 7.60 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.34 percent, what is the market value of the bond?

Design our business plans and establish organizational : As managers, we use financial ratios and analysis to “design” our business plans and establish organizational [financial] targets. Assume that you are a consultant assisting a start-up company with creating their business plan. Describe your rational..

What is the equity multiplier-return on equity-net income : Locker Company has a debt-equity ratio of .65. Return on assets is 9.8 percent, and total equity is $850,000. What is the equity multiplier? Return on equity? Net income?

Two designs on the basis of equivalent worth per mile : A new highway is to be constructed. Design A calls for a concrete pavement costing $90 per foot with a 20-year life; two paved ditches costing $3 per foot each; and three box culverts every mile, each costing $9,000 and having a 20-year life. Compare..

What is the beta of your portfolio : Portfolio Beta You own $20,000 of City Steel stock that has a beta of 3.30. You also own $37,500 of Rent-N-Co (beta = 1.75) and $20,500 of Lincoln Corporation (beta = -.85). What is the beta of your portfolio?

What is the value of the shareholders equity account : Rose, Inc., has current assets of $7,300, net ?xed assets of $26,200, current liabilities of $5,700, and long-term debt of $12,900. What is the value of the shareholders’ equity account for this ?rm? How much is net working capital?

What is the value of the leased fee estate based : A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the elev..

What is his realized yield on the bonds : Josh Kavern bought 10-year, 10.1 percent coupon bonds issued by the U.S. Treasury three years ago at $907.38. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $820.16, what is his realized yield on the bond..

What is the required rate of return : Contoso Corp just paid a $2 dividend per share. It is anticipated that the dividend payments grow at a rate of 5% a year (forever). If the stock of Contoso Corp sells for $50 per share, what is the required rate of return?

User Account

All Pages