User Account

All Pages

Portfolio of the two assets

Assignment Help Finance Basics
Reference no: EM131041763

A stock has a beta of 1.2 and an expected return of 10%. The risk free asset currently earns 4%. If a portfolio of the two assets has an expected return of 8%, what is its beta?

A. 0.3

B. 0.6

C. 0.8

D. 1.2

Reference no: EM131041763

Questions Cloud

Preparing a strategy-evaluation report : Summarize your research findings by preparing a strategy-evaluation report for your instructor. Include in your report a summary of PepsiCo’s strategies and performance in 2012 and a summary of your conclusions regarding the effectiveness of PepsiCo’..
Data collection forms into a computer data file : When entering codes from data collection forms into a computer data file, which of the following programs could be used?
Statements is true regarding coding : Which of the following statements is(are) true regarding coding?
Data collection process in the field : Much nonsampling error occurs during "data collection" process in the field. These "data collection" errors may be divided into
Portfolio of the two assets : A stock has a beta of 1.2 and an expected return of 10%. The risk free asset currently earns 4%. If a portfolio of the two assets has an expected return of 8%, what is its beta?
Readers might have after getting this announcement : The following announcement was sent to all 1,200 students at Jefferson high school. Identify the questions readers might have after getting this announcement. Revise the announcement for a more effective message and add any details you wish. Be prepa..
First payment occurring three months : Your grandmother has promised to give you $100 every three months for four years, with the first payment occurring three months from today. How much is this gift worth to you today at a discount rate of 3.8 percent, compounded quarterly?
A respondent indicated she redeemed a coupon : A respondent indicated she redeemed a coupon at Walmart last week but later indicated that she had not visited a Walmart in over two weeks. This type of response poses a problem of _____.
Best way to handle missing items when analyzing the data : The BEST way to handle missing items when analyzing the data is to:

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of measure of portfolio for a given risk

Computation of measure of portfolio for a given risk free rate and What is the Sharpe measure of the portfolio if the risk free rate is 4%

  Discuss this statement and discuss possibilities and

all models of valuation for a firm are conceptually sound and practically relevant in the financial market conditions

  Identify segmentation strategies and evaluate value

Identify segmentation strategies and evaluate value propositions.

  Briefly define the notion of a conservative current asset

briefly define the notion of a conservative current asset strategy. in your opinion what kind of the firms would be

  In order to adequately assess how a hospital is performing

in order to adequately assess how a hospital is performing it is imperative that the performance of the hospital be

  Compute the return the firm should earn given its level of

a manager believes his firm will earn a 16.00 percent return next year. his firm has a beta of 1.23 the expected return

  Calculate the fair price of a 6 month forward contract

The current price of a share of stock is 5, and the stock is expected to pay a dividend of 1 per share in 2 months and again in 5 months. The risk free annual effective rate of interest is 6%.

  Determine the different types of risk

Determine the different types of risk? How would you differentiate a typical risk and a corporate risk? Which type of risk has the most impact on a health benefits company that provides health, life, accident, disability,

  What is the firm s average tax rate?

what is the firm s average tax rate?

  What is the cost of internal common equity if the long-term

the expected dividend is 1.50 for a share of common stock priced at 15. what is the cost of internal common equity if

  Will fox accept the project

Fox uses the net present value method and has a discount rate of 11.25%. Will Fox accept the project?

  What is the cost of debt to j & b

J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the cost of debt to J & B?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd