What will be new portfolio beta

Assignment Help Financial Management

Reference no: EM131348580

You have a portfolio with a beta of 1.78. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.71? (Do not round intermediate calculation and round your answer to 2 decimal places.)

New portfolio beta

Reference no: EM131348580

Questions Cloud

Discuss structural-cyclical-frictional-natural unemployment : Discuss structural, cyclical, frictional, and natural unemployment. What fiscal and monetary policies are appropriate to fight unemployment? What type of unemployment will be affected most by these policies? Why? Which will be affected least? Why?

Dollar appreciated or depreciated in value relative to yen : Let the exchange rate be defined as the number of dollars per Japanese yen. Assume that there is a decrease in U.S. interest rates relative to that of Japan. (Part A) Would this event cause the demand for the dollar to increase or decrease relative..

Who were your earliest influences as a reader and writer : Who were your earliest influences as a reader and writer? How were they positive or negative? What role did parents, peers, and other adults play in your development?

Level of government involvement : (Part A) Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level of government involvement in our economy to minimize the impact and stabilize the different stages of the business cycle.

What will be new portfolio beta : You have a portfolio with a beta of 1.78. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.71?

Unreliable indicator of the standard of living : Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable?

Current stock price-what is its required return : Suppose Paccar’s current stock price is $108.26 and it is likely to pay a $3.06 dividend next year. Since analysts estimate Paccar will have an 5.6 percent growth rate, what is its required return?

Spot exchange rate-what do you predict the exchange rate : Suppose the spot exchange rate for the Hungarian forint is HUF 205.06. The inflation rate in the United States will be 2.2 percent per year. It will be 5.2 percent in Hungary. What do you predict the exchange rate will be in one year?

Identify the single most important economic principle : Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.

User Account

All Pages