User Account

All Pages

What is the required return on portfolio

Assignment Help Finance Basics
Reference no: EM132013413

A formula to calculate the question: The risk-free rate, kRF, is 6.6 percent and the market risk premium, (kM - kRF), is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 687 ,000 invested in a stock that has a beta of 1.2 and the remainder invested in a stock that has a beta of 1.5 . What is the required return on this portfolio? Enter your answer to the nearest .1%. Do not use the % sign in your answer, thus 12.1% is 12. 1 rather than 12.1 or .121.

Reference no: EM132013413

Questions Cloud

Calculate the fixed asset turnover ratio : The company reported total of $710,000 in fixed assets on January 1, 2011 & $890,000 in fixed assets on December 31, 2011. Calculate fixed asset turnover ratio
How much is each monthly payment : Payments are monthly, interest is monthly compounded, and you did not make a down payment. Assume you make all payments on time
What is the book value per share : What is the book value per share? Show your answer to the nearest $.01. Do not use the $ symbol in your answer, thus if your answer is $2.80 enter 2.80.
Prepare depreciation schedule under the straight-line method : The equipment has an estimated residual value of $2,000. Prepare a depreciation schedule under the straight-line method
What is the required return on portfolio : What is the required return on this portfolio? Enter your answer to the nearest .1%. Do not use the % sign in your answer, thus 12.1% is 12. 1 rather than 12.1
What other laws govern the use of protected information : Besides HIPAA, what other laws govern the use of protected information? Name at least three. When should an epidemiologist or public health professional obtain.
How much money will you have in account : If you deposit $16,500 at the Elmhurst Savings Bank on the first day of each year, and all accumulations earn 5.4% interest compounded annually
How much money will you have in your account : If you deposit $16,500 at the Elmhurst Savings Bank on the last day of each year, and all accumulations earn 5.4% interest compounded annually
Prepare a bank reconciliation : A customer check for $307.95, which had been deposited during the month, was returned NSF. Using the information provided above, prepare a bank reconciliation

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the intrinsic value of the option

The following information refers to a six-month call option on the stock of XYZ, Inc.

  Calculate the expected price per share

Calculate the expected price per share (today) for McKenzee Stock. If you purchase the stock at the price you have calculated.

  Differenciate value and income-based underwriting criteria

What is the difference between value-based and income-based underwriting criteria? In what way could you consider that the value-based criteria are more.

  Calculate the expected returns on the stock market

Calculate the expected returns on the stock market and on Chicago Gear stock. What is Chicago Gear's beta? What is Chicago Gear's required return according to the CAPM?

  What are the four basic types of wills

What is a will? Why should you name a guardian?

  Impact of stock market crises

Impact of Stock Market Crises : -  Use the loanable funds framework to explain how the massive selling of stocks leads to lower interest rates.

  Drive-thru automated teller machine

The number of customers who use a drive-thru Automated Teller Machine (or ATM) varies from one hourto the next, with a rate of 7 customers every 15 minutes.

  Calculating wacc for american express

American Express common stock has a beta of 1.4. If the risk free rate is 8 percent. If the expected market return is 16 percent and American Express has 20 million of 8% debt.

  Calculate the regular income

You expect to earn 8% interest on your remaining balance for the entire twenty years. a) Calculate the regular income that you can withdraw for twenty years.

  What is an application service provider (asp)

What are reasons for using external and internal sources of hardware?

  Cousin telephone number

What is the probability of randomly generating your cousin's telephone number?

  Regression mastery problem - session 5 a senior financial

regression mastery problem - session 5 a senior financial analyst with ace gadgets ag is attempting to get a better

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd