Risk level equivalent to that of overall market

Reference no: EM131015417

Your portfolio has a beta of 1.54. The portfolio consists of 16 percent U.S. Treasury bills, 34 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

1.85
4.53
0.87
0.42
2.40

Reference no: EM131015417

Questions Cloud

Computing the expected return on the portfolio : You own a portfolio that has $2,150 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks are 10 percent and 17 percent, respectively, what is the expected return on the portfolio? (Do not round your intermedi..

Problem regarding the smallest expected loss : Woodpecker, Inc., stock has an annual return mean and standard deviation of 21 percent and 47 percent, respectively. The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the ..

Development of healthy adult sexuality can be explained : First, explain this statement in at least ¾ page and use concrete examples. Be sure to define within what "polymorphously perverse" means. Second, provide some alternative theoretical perspective on how else the development of healthy adult sexual..

Smallest expected loss for portfolio in coming month : The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the coming month with a probability of 2.5 percent?

Risk level equivalent to that of overall market : Your portfolio has a beta of 1.54. The portfolio consists of 16 percent U.S. Treasury bills, 34 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

What is the beta of stock b : Your portfolio has a beta of 1.57. The portfolio consists of 16 percent U.S. Treasury bills, 35 percent stock A, and 49 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

What other types of organizations might respond : What role do you think state and federal agencies should have during the response phase of crisis and emergency management? Explain.

Calculate the var : Calculate the VaR for 7 days at the 95% confidence level. Calculate the VaR for 28 days at the 95% confidence level

Expected return on portfolio : A portfolio is entirely invested into BB Equity, which is expected to return 6%, and Z Bond's, which are expected to return 8%. 60% of the funds are invested into BB's and the rest in Z's. What is the expected return on this portfolio?

User Account

All Pages