What is the portfolios new beta

Assignment Help Finance Basics
Reference no: EM13258717

Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolio beta is 1.20. Suppose you sell one of the stocks with a beta of .08 for $5,000 and use the proceeds to buy another stock whose beta is 1.6. What is the portfolio's new beta?

Reference no: EM13258717

Questions Cloud

What is the role of professional organizations in shaping : The nursing profession has been shaped by many great nurses throughout history. How will you help to shape the future of nursing?
Determine what is the potential of the body now : A body attached to earth ground by an electrical conductor is at zero electrical potential. A charge of 25 C is added to the body. What is the potential of the body now. Explain.
A system for globally styling web pages written ian html : Algorithms that have been specialized to a specific set of conditions and assumptions, and written in a specific programming language.
Forecast mileage for next year using year moving average : Forecast the mileage for next year using a2-year moving average. Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 2,900miles.
What is the portfolios new beta : Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolio beta is 1.20. Suppose you sell one of the stocks with a beta of .08 for $5,000 and use the proceeds to buy another stock whose beta is 1.6. W..
How far apart must the penny and the group of electrons be : Lets assume that one electron is removed from each atom and these electrons are all removed from the penny to a distance such that the force of attraction between the positively charged penny and the removed group of electrons is 2.3 N.
The root word for professional comes from the latin word : Professionalism The root word for professional comes from the Latin word 'profere', which means "to promise." In ancient Rome, a person became a professional by standing in public and stating out loud what promises would be kept.
Operations management for that organization : History and background of the organization, also including the types of goods sold and industry in which the organization operates and the organization's supply chain characteristics - type of supply chain, negotiations strategies, performance of ..
Preparing the statement of cashflows : Under the indirect method on preparing the statement of cashflows, increases in current assets are __________ net income in thecash flows from operating activities section.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Evaluate the firms current stock price

Evaluate the firm's current stock price, growth model solve for the firm's current stock price

  What is yield to call (ytc)?

Ferris Incs bonds currently sell for $1,275 and have a par value of $1,000. They pay $120 annual coupon and have a 20-year maturity, but they can be called in 5 years at $1,120. What is their yield to call (YTC)?

  Bad debts-bankruptcy and loans

In 2010, Grace loaned her friend Paula $12,000 to invest in various stocks. Paula signed a note to repay the principal with interest.

  What will the market price of the security

The market price of a security is $55. Its expected rate of return is 9.26%. The risk-free rate is 4.26%, and the market risk premium is 5.26%. Assume the stock is expected to pay a constant dividend in perpetuity.

  Calculating expected growth rate

You expect KT Industries will have earnings per share of dollar 3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend.

  Discuss differences between a static and flexible budget

The three (3) components involved in creation of a budget are expenses, revenues, and the statistics (volume).

  Computing maximum one month loss of currency portfolio

Compute the maximum one month loss of currency portfolio? Use 97% confidence level and suppose monthly percentage change for each currency are normally distributed.

  What is the firms cost of debt

If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's cost of Debt?

  Determining auto industry-bankrupt

The auto industry does need the bail out. It is necessary to protect millions of jobs across the US (one out of ten American jobs is associated with auto industry).

  Defined benefit pension plan

Kenny's Aquatics, Inc. sponsors both a profit sharing plan and a defined benefit pension plan.  If Kenny's Aquatics would also like to contribute the maximum to the profit sharing plan, how much can they contribute?

  Find the divisions total costs

Texas Products Inc has a division which makes burlap bags for the citrus industry. The unit has operating fixed expenses of $12,000 per month, and it must sell 42,000 bags per month at $2.50 to break even.

  Determine stock selling price

The risk free rate of return, r RF, is 6%; the required rate of return on the market is 10%; and Upton Company's stock has a beta coefficient of 1.5.

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