About the portfolio beta

Assignment Help Financial Management
Reference no: EM13925191

Portfolio beta

An individual has $15,000 invested in a stock with a beta of 0.3 and another $55,000 invested in a stock with a beta of 1.9. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.

Reference no: EM13925191

Questions Cloud

Calculate value of real option by waiting one year to decide : Marcal Corporation is considering foreign direct investment in Asia. The company estimates that the project would require an initial investment of $18 million. and generate positive cash flows of $3 million a year at the end of each of the next 20 ye..
Use the following information to prepare a multi step : Use the following information to prepare a multi step income statement and a classified balance sheet for Webb Equipment Co. for 2014.
Calculate the cost of purchasing the equipment with debt : Reynolds Corporation plans to purchase equipment at a cost of $3 million. The company's tax-rate is 30 percent and the equipment's depreciation would be $600,000 per year for 5 years. If the company leased the asset on a 5-year lease, the payment wou..
Analyze how this will affect foreign exchange derivatives : Considering the U.S. Federal Reserve board announced that U.S. Interest rates will stay low through mid-2014 , analyze how this will affect the foreign exchange derivatives
About the portfolio beta : An individual has $15,000 invested in a stock with a beta of 0.3 and another $55,000 invested in a stock with a beta of 1.9. If these are the only two investments in her portfolio, what is her portfolio's beta?
Do the atoms of the peptide group lie in the same plane : Do the atoms of the peptide group lie in the same plane?
Bond valuation-what is the bonds price : Nungesser Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 9 years to maturity, and an 7.5% YTM. What is the bond's price?
What are the atoms that constitutes the peptide group : What are the atoms that constitutes the peptide group?
Exceed the required return on the less risky stock : Stock R has a beta of 1, Stock S has a beta of 0.65, the expected rate of return on an average stock is 13%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risk..

Reviews

Write a Review

Financial Management Questions & Answers

  How they defined and operationalized variables

Explain why the researchers exhibited similarities and differences in how they defined and operationalized variables while providing a theoretical framework

  Future value for various compounding periods

Find the amount to which $500 will grow under each of these conditions: 12% compounded annually for 5 years. 12% compounded quarterly for 5 years.

  Difference between New York stock exchange and NASDAQ market

An major difference between New York stock exchange and NASDAQ market is. An investment whose characteristic line has a slope greater than 1 is known as. The most common base rate of interest in the U.S is_______?

  Calculate the-mortgage constant-annual debt service-egi

You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $8,100. Calculate the -Mortgage constant -Annual Debt Service -EGI, NOI, BTCF -..

  Considering investing in one of two economies

You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together..

  Ongoing profitable operations

Mustaine Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $279,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven year..

  What does the acronym camels refer to

What does the acronym CAMELS refer to in commercial bank examinations? What are the most important facets of an examination?

  Optimal order quantity in part change the ordering cost

Shakina Harris, who works in her brother’s hardware store, is in charge of purchasing. Shakina has determined that the annual demand for #6 screws is 150,000 and is fairly constant over the 200 days that the store is open each year. Shakina’s brother..

  What is your estimate of the stocks current price

A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.05, the..

  Your company is thinking about acquiring another

your company is thinking about acquiring another corporation. you have two choicesmdashthe cost of each choice is

  Monthly loan payment

(Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,699. If you could borrow that amount from Carl's Credit Union at 6% for 1 year, what would be your monthly loan payments?

  Cost of common equity

Percy Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 13.50%. ..

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