Less systematic risk than market portfolio

Assignment Help Accounting Basics
Reference no: EM131015490

Consider investment below. Suppose we buy 50 shares of Stock A and 60 shares of Stock B.

Stock

Price

Beta

A

$25

0.9

B

$37

1.1

1. What is the portfolio weight of Stock A?

2. What is the portfolio beta?

3. Does this portfolio have more or less systematic risk than market portfolio? Why?

4. At the end of this year, the price of Stock A is now $30 and the price of Stock B is till $35. If you also spend $975 on Treasury bills, what would the portfolio beta be?

Reference no: EM131015490

Questions Cloud

Provide an opportunity to capture new ideas : Each week you will work on one aspect that will help you prepare for the course and reflect. Consider this Journal as study notes. This Journal will provide an opportunity to capture new ideas from knowledge gained and record your thoughts through..
Find the crossover rate for projects : a. Find the NPV and MIRR of projects A and B. If projects A and B are mutually exclusive, which project would you select? b. Find the crossover rate for projects A and B. c. What is the profitability index for projects A and B? How many IRRs exist fo..
How do they use symbols similarly and different : Compare and Contrast Frankenstein and Abraham Lincoln Vampire Hunter. How do each of them treat the themes of life and death?
Examine the business concepts of quality management : Many of the terms of quality management and lean systems come from Japanese culture and language, due to Dr. W. Edwards Deming's research occurring in Japan. Deming is often referred to as The Father of Quality due to his foundational role in the ..
Less systematic risk than market portfolio : Does this portfolio have more or less systematic risk than market portfolio? Why? At the end of this year, the price of Stock A is now $30 and the price of Stock B is till $35. If you also spend $975 on Treasury bills, what would the portfolio beta..
Find the work required to pump the water out of outlet : The tank shown below is full of water. Using the fact that the density of water is 1000kg/m3, find the work (in joules) required to pump the water out of the outlet.
How clear and concise the language is : Attack your research articles with the active reading strategies Kennedy & Kennedy recommend. Respond to the appropriate questions about genre, style, rhetorical context, and organization for this new adventure in intertextuality. We will analyz..
Obtain data for the labor cost in any one state : Obtain data for the labor cost in any one state from a government Web site that provides labor statistics. You may search the Internet using the keywords "labor cost in United States" to obtain the data
Explain how you will measure client progress : Explain how you will measure client progress. Conduct online research to determine one or two measurement scales that would be helpful for your research design (purposeful sample).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Abraham inc a new jersey corporation operates 57 bakeries

abraham inc. a new jersey corporation operates 57 bakeries throughout the northeastern section of the united states. in

  Imagine that you run a photography printing store your

1.explain the life cycle of an information systems2.apply the steps of the life cycle to the scenario listed

  What is included in the cost basis of a long-lived asset

what is included in the cost basis of a long-lived asset? explain for at least two types of such assets. what sources

  Demonstrate the validity of the accounting equation

As you have learned in this week's readings the Accounting Equation is Assets = Liabilities + Owners' Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of ..

  Effect of transactions on assets-liabilities and net income

For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an ad..

  Determine the break-even point

A company has estimated fixed costs of $150,000 and estimated variable costs of $25 per unit. It is projected that 4,000 units will be sold at a selling price of $50 per unit. Determine the break-even point

  Describe three issuesproblems that a company could

describe three issuesproblems that a company could encounter when trying to determine the actual cost of a good or

  What would be similar between each organization

What would be similar between each organization?

  Human problems of industrialized civilization

The Human Problems of an Industrialized Civilization was written by Mary Parker Follett. Which of the statements given above is/are correct? (a) Only l (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2

  Why would you select the percentage of sales method

Why would you select the percentage of sales method on calculating doubtful accounts as opposed to the percentage of receivables method? Which method favors the income statement? Which method favors the balance sheet?

  Costs-fixed and variable costs

Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units ..

  What possible strategies could your organization adopt

What possible strategies could your organization adopt to address these challenges? What role could information systems play in these strategies? Use Porter strategies as a guide.

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