Beta of the other stock in portfolio

Assignment Help Finance Basics
Reference no: EM131628177

You own a portfolio invested as to one-half in a risk-free asset, and as to one-quarter in each of Stock A and Stock B. If Stock A has a beta of 1.8 and the total portfolio is as risky as the market, what must be the beta of the other stock in your portfolio.

Reference no: EM131628177

Questions Cloud

Would you want cbm as your client : If you were a bank manager, would you want CBM as your client? Why or why not?
Create a project plan with logical relationships components : Create a project plan with the following components. Upload on MS Word document as the project plan. Budget: Embed MS Excel into the Word document.
Find the depreciable value of an asset : Find the depreciable value of an asset that costs $38,490 and has a scrap value of $4,800 if the straight-line method of depreciation is used.
Explain marley but refused to repay the loan : Jacob borrowed money from Marley but refused to repay the loan. Marley knew that Jacob worked late, so he called Jacob at 3 a.m
Beta of the other stock in portfolio : If Stock A has a beta of 1.8 and the total portfolio is as risky as the market, what must be the beta of the other stock in your portfolio.
Review the given organizations website : Review their website and see if you can tell whether or not they accept donations. If you can't tell, check Guidestar and see if they are listed.
Discuss the pros and cons to customising the system : HS2041 Enterprise Systems Individual Assignment. Discuss the pros and cons to customising the system. What are key goals IGT wanted to achieve using ERP system
Find the depreciation for the property : Find the depreciation for each of the final two years for property purchased for $113,984 and placed in service under the MACRS as a 15-year property.
Examine the key challenges that ms purnama may encounter : Speculate on whether or not elements of culture would affect the behavior of the developers that she chooses. Provide a rationale for your response.

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the company''s financial performance and condition

Evaluate the company's financial performance and condition.

  The required rate of return is 16 percent what is the

constant growth jenny banks is interested in buying the stock of fervan inc. which is increasing its dividends at a

  What should we be wary of in this advertisement

The company has a double-your-money-back guarantee. They claim only 2 percent of their customers were not helped and asked for a refund.

  Evaluate the present value of the tax benefits from the

your company is considering a new project that will require 985000 of new equipment at the start of the project. the

  Determine the estimated before-tax rate of return

Use the range of estimates to compute the mean life and determine the estimated before-tax rate of return.

  What is the estimated value of bond x using matrix pricing

What is the estimated value of Bond X using matrix pricing? What is the 18-month spot rate? What discount margin is reflected in the FRN's price?

  Why do firms hold cash balances

How does the Baumol cash management model differ from the Miller-Orr cash management model?

  What is the yield to maturity

What is the yield to maturity of a 8-year bond that pays a coupon rate of 16.88% per year, has a $1000 par value, and is currently priced at $1250?

  You are given with a stochastic process for a firm value

You are given with a stochastic process for a firm's value

  What is the present value of a security

What is present value of a security that will pay $50,000 in 10 years if securities of equal risk pay 6%? What interest rate must you earn to achieve that goal, assuming no additional amounts are added to savings account?

  Moderate current asset investment policy

Edwards Enterprises follows a moderate current asset investmentpolicy, but it is now considering a change, perhaps to a restrictedor maybe to a relaxed policy.

  What kind of duties and expectations are asked of you

What is your proposed job description and what kind of duties and expectations are asked of you? Financial analyst who assists others in managing their wealth and distributions.

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