Portfolio is invested in a risk-free security and two stocks

Assignment Help Financial Management

Reference no: EM13971073

A $16,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 0.67 while the beta of stock B is 1.64. 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 0.52?

Reference no: EM13971073

Questions Cloud

What are the major weaknesses of this financial plan : As a financial consultant you are helping a client who just won a fortune in Las Vegas, plan his retirement. He plans to deposit his newly won fortune in his bank today (January 1, 2016) in a savings account that pays 5% interest compounded annually...

Contribute for the growing importance of distribution : Discuss with illustration A) the factors that contribute for the growing importance of distribution channels management; B) how the presence of intermediaries overcomes discrepancies and improves contact efficiency;

Harry picture manufactures various picture frames : What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520. A) $876 B) $1,036C) $129.50 D) $400

Why is the burden of proof on the plaintiff : Now answer the following questions: Why is the burden of proof on the plaintiff? How easy do you think it is for an individual to win a discrimination case against a corporation? What does the individual bringing the case stand to lose

Portfolio is invested in a risk-free security and two stocks : A $16,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 0.67 while the beta of stock B is 1.64. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the..

Differences between libel and slander : Compare and contrast the fundamental differences between libel and slander, and provide one (1) example of each term in question which demonstrates the key differences between them.

What is the expected return on silvanus stock : The stock of Silvanus Wildlife, Inc., has a beta of 1.04. The market risk premium is 8.21 percent and the risk-free rate is 3.59 percent. What is the expected return (in percents) on Silvanus stock?

Equity loans typically have payments than automobile loans : Interest rates on automobile loans tend to be higher than rates on home equity loans. Home equity loans typically have more payments than automobile loans.

Treasury bill rate and market risk premium is estimated : The common stock of Buildwell Conservation & Construction, Inc., has a beta of .80. The Treasury bill rate is 6%, and the market risk premium is estimated at 9%. BCCI’s capital structure is 25% debt, paying a 5% interest rate, and 75% equity. Buildwe..

User Account

All Pages