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).

User Account

All Pages