Find the portfolio beta of an equally-weighted portfolio

Assignment Help Financial Management
Reference no: EM131551333

Find the portfolio beta of an equally-weighted portfolio that holds all 5 of these stocks. (Chipotle (CMG), Intel (INTC), Johnson & Johnson (JNJ), MGM Resorts (MGM), Marriott (MAR))

If the risk-free rate is 4% and the market’s return is 13%, find the the portfolio’s required return.

Reference no: EM131551333

Questions Cloud

What is the spot gain or loss and futures gain or loss : What is the spot gain or loss? What is the futures gain or loss? What is the net hedging result?
Percentage of the company capital structure consists of debt : Financing Hook Industries' capital structure consists solely of debt and common equity. What percentage of the company's capital structure consists of debt?
What is this firm after-tax wacc : What is this firm's after-tax WACC?
What conditions may a project manager accept change request : Under what conditions may a project manager accept a change request?
Find the portfolio beta of an equally-weighted portfolio : Find the portfolio beta of an equally-weighted portfolio that holds all 5 of these stocks. (Chipotle (CMG), Intel (INTC), Johnson & Johnson (JNJ), MGM Resorts (
What would be an appropriate estimate of the stock price : What would be an appropriate estimate of the stock price today?
What is the expected rate of return on this stock : The overall stock market has a 10.6 percent rate of return and a risk premium of 8.7 percent. What is the expected rate of return on this stock?
What is your expected rate of return on stock : There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock?
What is a fair value for this stock today : The leading P/E ratio is expected to increase up to 20 in two years. If the required rate of return is 10%, what is a fair value for this stock today?

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss and analyse all the issues in order

Discuss and analyse all the issues in order, and any other implications arising from this scenario for presentation to Mark Golledge .

  Put-call-parity that european call is equivalent to european

We know for the put-call-parity that an European call is equivalent to an European put plus a future that have the same strike price and maturity assuming the underlying stock pays no dividends. Write down an explicit portfolio to take advantage of t..

  Bond spread over comparable maturity treasury bonds

A Corporate bond matures in five years. It has a par value of $1000 and pays a 7% annual coupon. This bond’s spread over comparable maturity Treasury Bonds is 150 basis points. Treasury bond yields are currently 2%, 4% and 6% for 2 year, 5 year and 1..

  An investment under consideration has payback of six years

An investment under consideration has a payback of six years and a cost of $872,000. Assume the cash flows are conventional. If the required return is 12 percent, what is the worst-case NPV?

  The empirical validity of the capital asset pricing model

Explain, and in details, how you can test the empirical validity of the Capital asset Pricing Model.

  Data calculate the after-tax cash flow

Given the following data calculate the after-tax cash flow. Sales $389,000, cost of goods sold $200,000, taxes $108,000, interest $45,000, operating expenses $67,000, depreciation $50,000, net income $39,000.

  About the spot exchange rate

Suppose 1 year ago, Miller Company had inventory in Britain valued at 1.5 million Swiss Francs. The exchange rate for dollars to Francs was 1 Franc = 1.15 dollars. Today, the exchange rate is one Swiss franc equals 1.06 U.S. dollars. What is the U.S...

  Which dividends are expected to grow at a rate

The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm’s required return (rs) is 12%, what is its curre..

  Wacc cause changes in irr ranking of mutually projects

If two mutually exclusive projects were being compared, would a high cost of capital favor the longer-term or the shorter-term project? Why? If the cost of capital declined, would that lead firms to invest more in longer-term projects or shorter-term..

  What is the value of a 2 month european call option

he risk-free interest rate is 10% per annum with continuous compounding.-  What is the value of a 2-month European call option with a strike price of $49? Use noarbitrage arguments.

  What is the present value of the cash flows

Your organization has been asked to invest in a continuing care retirement center. Your investment will be $600,000 per year for the next five years. After five years, cash flows will be $400,000 per year for the next 15 years. If your discount rate ..

  Calculate the standard deviation for the two stocks

Calculate the expected return for the two stocks. Calculate the standard deviation for the two stocks.

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