Compute the expected return and beta

Assignment Help Finance Basics

Reference no: EM131793627

Question: You have $134,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 16.4 percent. Stock X has an expected return of 15.2 percent and a beta of 1.36, and Stock Y has an expected return of 12.2 percent and a beta of 1.12. How much money will you invest in stock Y? What is the beta of your portfolio?

Reference no: EM131793627

Questions Cloud

When will she be at maximum productivity during the morning : Productivity the number of parts produced per hour by a worker is given by N = 4 + 3t2 - t3 where t is the number of hours on the job without a break.

Determine variable factory overhead controllable variance : Determine the variable factory overhead controllable variance, fixed factory overhead volume, and total factory overhead cost variance

Starbucks code of behavior : Much Ado About Nothing, or the Real Deal “Starbucks Code of Behavior” discusses the approaches and provisions company has utilized in its attempt to establish

What will be the largest graduating class in the next years : Population estimates show that the equation P = 300 + 10t - t2 represents the size of the graduating class of a high school.

Compute the expected return and beta : You have $134,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 16.4 percent.

State the account title that is normally used to report : For each item, state the account title that is normally used to report the item on the balance sheet

Find the best location for the observatory : Suppose that an observatory is to be built between cities A and B, which are 30 miles apart. For the best viewing, the observatory should be located .

Recommend an organizational intervention : Students will review theories, practice, and strategies to evaluate an organizational case study, and recommend an organizational intervention.

What risks exist for the company : What risks exist for the company? How can the company alleviate these risks? What competition does the company have in the current market?

User Account

All Pages