One-half of the portfolio is invested in risk-free security

Assignment Help Financial Management

Reference no: EM131894364

A $16,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 0.73 while the beta of stock B is 1.99. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.67?

B Aine would like to create a portfolio that is equally invested in a risk-free asset and two stocks. The one stock has a beta of 1.14. What does the beta of the second stock have to be if Aine wants the portfolio risk to equal that of the overall market?

C The common stock of Modron Creations has an expected return of 13.89 percent and a beta of 1.41. The expected return on the market is 10.77 percent. What is the risk-free rate (in percents)?

Reference no: EM131894364

Questions Cloud

Formulate a linear goal programming model : The Tiny Toy Company makes three types of new toys: the tiny tank, the tiny track, and the tiny turtle. Plastic used in one unit of each is 1.5, 2.0.

Explain how confucius or chuang tzu or a buddhist : Explain how Confucius or Chuang Tzu or a Buddhist would support or condemn the decision Socrates made.

Role of evidence in settling questions : Do you think this parable is a good analogy for the role of evidence in settling questions of religious belief? Why or why not?

Why is there a restriction on the generation of icmp message : Why is there a restriction on the generation of an ICMP message in response to a failed ICMP error message?

One-half of the portfolio is invested in risk-free security : One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.67?

What did you learn from your classmates posting : Your first task is to post your draft to the discussion area so that other students will be able to review your work.

What would dollar profit on the rights be : If Todd invests his $5,700 in Gallagher rights and the price of Gallagher stock rises to $88 per share ex-rights, what would his dollar profit on the rights be?

Natural law theory independent of religious belief : In what way is Immanuel Kant's ethics independent of (not based on) religious belief? Is the Natural Law theory independent of religious belief?

Write a program to print the numbers : Write a program to print the numbers that do not appear in the Fibonacci series. The number of such terms to be printed should be given by the user.

User Account

All Pages