What is the portfolio new beta

Assignment Help Finance Basics
Reference no: EM132137131

You have a portfolio of 5 stocks that have a total value of $40,000. The beta coefficient of this portfolio is 1.2. You want to invest an additional $10,000 in a stock that has beta equal to 2.2. After adding this, what is the portfolio's new beta?

Reference no: EM132137131

Questions Cloud

Large number of assets : Firstly a systematic risk is one that deals with a large number of assets and can also be labeled as a market risk, on the other hand a non systematic risk
Develop a copy constructor and assignment operator : Develop a copy constructor and assignment operator (and understand why!), work with C-Style strings and pointers.
What is the portfolio expected return : You invested $12,000 in a stock that has an expected return of 18% and $21,000 in a stock with an expected return of 10%. What is the portfolio's expected retur
Define in bnf a grammar for strong password : Strong passwords are at least 8 characters in length, contain both upper- and lower-case letters, as well as some digits and special characters.
What is the portfolio new beta : You want to invest an additional $10,000 in a stock that has beta equal to 2.2. After adding this, what is the portfolio's new beta?
Beta coefficient associated with a firm stock : If the beta coefficient associated with a firm's stock is 1.5, what should the stock's required rate of return be?
What are the pros and cons of shifting to oop : If structured programming promotes the creation of good code and procedural programs are easier to maintain, why do you need to shift to OOP?
What is the risk-free rate of return : If a stock has a beta coefficient of .8 and a required rate of return equal to 11%, while the market return is equal to 12.5%, what is the risk-free rate of ret
Required rate of return on the less risky stock : By how much does the required rate of return on the riskier stock exceed the required rate of return on the less risky stock.

Reviews

Write a Review

Finance Basics Questions & Answers

  Internal rate of return and the capital investment decision

How would inflation impact the Internal Rate of Return and the capital investment decision?

  Calculate the profit margin for the year

Change in Asset Turnover and Earnings Quality (Medium) An analyst finds that, for a firm reporting a return on net operating assets of 19 percent.

  What is the effective cost of credit to worthington

How would I put that in a essay format? Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthington's commercial paper will be placed at a cost of $35,000. What is the effectiv..

  Figure out the approximate annually compounded

Use your calculator or spreadsheet to figure out the approximate annually compounded rate of return needed in each of these cases

  What experience do you need with each area in budget process

The Budget Analyst must have working knowledge of the budget process and Resource Management structure, as well as, the standard accounting and supply systems.

  What is the internal rate of return on this project

Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years.

  Complete the evaluation of the firm beta

Please complete the Evaluation of the firm's Beta in relation to a specified market index (eg. S&P 500, Nasdaq 100, Dow 30). Curernt Beta is 1.43.

  How come the share price does drop

a. How come the share price doesn't drop when new debt is taken on?

  Project manager for abc company

As a are a project manager for ABC Company. The company wants to purchase new equipment, train employees on the equipment

  What is the amount of rent expense

What is the amount of rent expense that Vaughn should record for the year ended December 31, 2017, and for the year ended December 31, 2018?

  What are experimenter expectancy effects

Should demand characteristics be eliminated or strengthened in an experiment? Explain.

  Explain how does financial leverage affect your decision

Based on the result of Part 2 and an Incremental IRR analysis, make your recommendation as which way to go, Part 1 or Part 2, and explain how does financial.

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