How much should invest in the risk-free asset

Assignment Help Financial Accounting
Reference no: EM132609017

Question 1: You want your portfolio beta to be 1,20. Currently, your portfolio consists of R100 invested in share A with a beta of 1,4 and R300 in share B with a beta of 0,6. You have another R400 to invest and want to divide it between an asset with a beta of 1,6 and a risk-free asset. How much should you invest in the risk-free asset?

Reference no: EM132609017

Questions Cloud

What is work sampling : What is work sampling? Describe its features, advantages, and limitations. How can it help improve productivity?
List and describe some basic ergonomic principles : List and describe some basic ergonomic principles.
What is quality of work life : What is Quality of Work Life and why is it so important to productivity?
What is the balance in the Common Stock account : The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the Common Stock account after this issuance
How much should invest in the risk-free asset : R400 to invest and want to divide it between an asset with a beta of 1,6 and a risk-free asset. How much should you invest in the risk-free asset?
How do mergers will affect stakeholders : How do you think mergers will affect stakeholders such as government, investors, lenders and standard setters? Discuss any ethical issues
What was the average issue price per share : Common Stock, $10 Par Value, 30,000 Shares Authorized, 12,000 Shares Issued and Outstanding $120,000. What was the average issue price per share
Is parkson holdings berhad and pacific hypermarket : Is Parkson Holdings Berhad and Pacific Hypermarket & Departmental Store considered the main competitors of Aeon Co. (Malaysia) Berhad?
What is the total amount of stockholders equity : If the company does not have any Other Comprehensive Income (loss) - stockholders' equity, what is the total amount of stockholders' equity

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Best possible future response of consumers

For marketers, what is the best possible future response of consumers following the decision-making process? Which of the following is not a stock depletion scenario?

  Find the earnings per share of common stock

Find the earnings per share of common stock. The dividend to preferred stockholders was not declared. The preferred stock is cumulative.

  Calculate average profit and cost per unit

In a PowerPoint document, together, prepare a report (2-3 pages) for the Packett Packaging Pty Ltd management team that provides analysis of their performance against their budget for 2009/2010 financial year.

  What the total amount that will be added to the common share

What The total amount that will be added to the Common Shares account when the final subscriptions are received will be?Subscriptions Receivable, Common Shares

  Fica and federal income taxes are recorded

Gross pay for direct labor is recorded by a debit to Work in Process. Salaries for all other factory personnel are recorded by a debit to Factory Overhead. Salaries of nonfactory personnel are recorded at the end of each month by a debit to the appro..

  Perating section of the statement of cash flows

Please prepare the operating section of the Statement of Cash Flows for the year ended 12/31/20X2 using the indirect method. Be sure to include a 3-line heading at the top.

  Calculate depreciation expense under methods

Calculate depreciation expense under each of the following methods. Tamarisk is on a calendar-year basis ending December 31. (Round rate per hour)

  Compute for kiwi company expenses relating to the store

Compute for Kiwi Company's expenses relating to the store lease for 2015? Kiwi Company leases and operates a retail store information relates to the lease

  What is copper interest expense in the situation

What is Copper' interest expense in this situation? What is the receivables collection period? What is the payables payment period?

  What amount should be reported as goodwill as a result

At the current year-end,In the statement of financial position, what amount should be reported as goodwill as a result of the acquisition?

  Smith-kline company maintains inventory

Smith-Kline Company maintains inventory records at selling prices as well as at cost.

  Equity accounts

Internal control components are common among long-term assets, liabilities, and equity accounts.What components are unique to each? How can an auditor assess these controls.

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