Diversified portfolio consisting

Assignment Help Financial Management
Reference no: EM131826560

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.82. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 1.69. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131826560

Questions Cloud

Consumer purchasing refrigerator is offered two payment plan : A consumer purchasing a refrigerator is offered two payment plans:
What is evolutionary theory and what does it explain : What is evolutionary theory? What does it explain? What are the key mechanisms it involves? How is it different from theories of biological diversity?
What is a realistic amount Ron should expect to spend : Computer Your friend Ron has asked for your help in buying a home computer. He intends to use the computer for word processing, email, entertainment.
Testing for fibromyalgia : A patient named Diana was diagnosed with Fibromyalgia, a long-term syndrome of body pain, and was prescribed anti-depressants.
Diversified portfolio consisting : Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks.
Argue why a different perspective is true instead : Argue why a different perspective is true instead. Imagine you are writing for the same publication/audience as the original piece.
Testing for food safety : A food safety inspector is called upon to investigate a restaurant with a few customer reports of poor sanitation practices.
Configure static routing on the isp router : ITNE2003 - Basic RIP Configuration - Examine the network requirements and What is the gateway of last resort in the routing table of the BRANCH router?
Contrasting the standards or recommendations : Critically analyze current European and United States industry standards or recommendations for any Information Technology (IT) area or subarea.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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