How the beta of a portfolio can equal the market beta

Assignment Help Finance Basics
Reference no: EM13268058

Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security.

Reference no: EM13268058

Questions Cloud

Role of u.s. attorneys office : What charges do you think that the drug dealer should have and what is the role of the judiciary in this case? The role of U.S. Attorney's office? The role of your office?
What role does the weighted average cost of capital play : What role does the weighted average cost of capital play when determining a project's cost of capital?
Calculate armature current and total losses in machine : Calculate the armature current, total losses in the machine, and the I^2R losses in the armature. Help would be greatly appreciated as my calculations for Armature Current Ia is in my mind way too high, 480A. Then calculate the losses in the armat..
What is the longest radiation wavelegth : It is possible to use electromagnetic radiation to ionize atoms. To do so, the atoms must absorb the radiation, What is the longest radiation wavelegth
How the beta of a portfolio can equal the market beta : Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security.
What is mom return on assets : Mind-Over-Matter (MOM) Tutors has a total assets turnover equal to 3.0x, a net profit margin equal to 4 percent, and a return on equity (ROE) equal to 15 percent.
What is the minimum thickness of the plexiglass : in a Tom's double-slit experiment using 549nm light, a thin piece of plexiglass of refractive index 1.53 covers one of the slits. what is the minimum thickness of the plexiglass
What is the yield to maturity : The Fishing Pier has 6.60 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,047. What is the yield to maturity?
Explain how electronic commerce is impacting trade : Describe and explain how electronic commerce is impacting trade, both domestic and international.

Reviews

Write a Review

Finance Basics Questions & Answers

  Set up an amortization schedule for the first two payments

A loan of $7,520 is to be repaid over seven years with monthly payments and an interest rate of 19.0827%, compounded annually. Set up an amortization schedule for the first two payments and the last two payments.

  Effective rate of return on investment

If you go with investment by how much will the effective rate of return increase.

  Calculation of the implied growth duration of various compan

Calculation of the implied growth duration of various companies and decision making  - Compute the growth duration of each company stock relative to the S&P Industrials and evaluate the growth duration of Company A relative to Company B.

  Important multiple choice question on finance

If a company has an average tax rate of 40%, the approximate yearly, after-tax cost of debt for a 10-year, 8%, $1,000 par value bond selling at $1,150 is

  Calculation of modified internal rate of return

Calculation of Modified Internal Rate of Return [MIRR] of even cash flows and You have calculated a cost of capital of 12% for ASI

  Calculate enterprise value

Analysts are forecasting that SimpleCorp will report free cash flow in the coming years as follows, In addition, analysts expect SimpleCorp shares to experience no multiple expansion or contraction and therefore to trade throughout the forecast an in..

  What is the size of the industry?

Prepare a brief, written proposal to the management team, explaining your potential choice for acquisition: Overview of potential acquisition and why it makes sense to the parent- J. C. Penney acquiring Kohl's. This is the who, what, where, why, when..

  Computation of no odd days to pay its suppliesrs

Computation of no odd days to pay its suppliesrs and the cost of goods sold is equivalent to 65% of sales

  What is the irr for the gold mine

After 11 years, the mine will be abandoned. Abandonment costs will be $114,000 at the end of year 11.

  Identify the most efficient capital structures

Identify the most efficient capital structures for both a manufacturing company and a software development firm.

  Find the best option to buy an automobile

Suppose you want to buy an automobile for $34,633. The dealer offers you 0% financing for 72 months or a $3,076 rebate. You can get financing for 72 months at the local bank.

  Walden acquisition-able corporation

Able corp. is a power tool company with critical issues. They've no knowledge of their market share, the size of the market nor the dynamics that drive the market in their line of business.

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