What does the beta of the second stock have

Assignment Help Finance Basics
Reference no: EM13279368

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.93. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.61?

Reference no: EM13279368

Questions Cloud

What smaller scholarship can be awarded the year prior : What smaller scholarship can be awarded the year prior to the first $5,000 scholarship?
What is the average kinetic energy in the gas : 2.00 moles of an ideal gas is at a pressure of 1.50 atmospheres,  What is the average kinetic energy per particle in the gas
Compensation practices in other parts of the world : Why is it important for HR and compensation professionals to learn about compensation practices in other parts of the world?
Define what should the concentration of hcl : Assuming that 0.5 grams of a 1.0 gram sample is CaCO3, what should the concentration of HCl (M) be if you want to use 25.0 mL for the titration
What does the beta of the second stock have : You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.93. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.61?
Implementation of international compensation programs : Describe the four challenges that companies face in the development and the implementation of international compensation programs. how can a company prevent problems that are risen by repatriation?
How deep is the ocean floor : A sonar generator on a submarine on the ocean surface produces periodic ultrasonic waves at a frequency of 2.50 MHz. How deep is the ocean floor
Determine the input sequence of voltage : in a balanced three-phase wye system the source is an abc-sequence set of voltage. the load voltage on the a phase is Van= 108.58
What is the cost of the cash alternative at end of 2 years : What is the cost of the cash alternative at the end of 2 years? f.Should Bob and Carol choose the financing or the cash alternative?

Reviews

Write a Review

Finance Basics Questions & Answers

  Candy and i were going

Candy and I were going through the last year's financial statements (year ended 31 December 2012) and I discovered that the income tax expense account was significantly lower than the income tax the company actually paid to the Australian Taxation Of..

  Explain and identify the types of cost

Briefly explain and identify the three types of cost estimates. Cite any pertinent examples from your own experience in working with these types of cost estimates.

  What should the expected ppp

Chase Econometrics has just published projected inflation rates for the United States and Euro-zone for the next five years. U.S. inflation is expected to be 2% per year, and Euro-zone inflation is expected to be 3.5% per year.

  Describe a bearish pattern with the two ma lines

Assuming a stock price and volume chart that also contains a 50-day and a 200-day MA line, describe a bearish pattern with the two MA lines and discuss why it is bearish.

  What is the current share price

If the required return on the stock is 8 percent, what is the current share price?

  Compare the eective annual rate on these investments

Here are some alternative investments you are considering for one year. (i) Bank A promises to pay 8% on your deposit compounded annually. (ii) Bank B promises to pay 8% on your deposit compounded daily. Compare the eective annual rate (EAR) on..

  What is the standard deviation of the stock return

what was the stock's return for the missing year? What is the standard deviation of the stock's return?

  What would be katydid before-tax component cost of debt

KatyDid Clothes has a $150 million ($1000 face value) 15-year bond issue selling for 106% of par that carries a coupon rate of 8%, paid semi-annually. What would be KatyDid's before-tax component cost of debt?

  Define comparison of borrowing costs based on annual percent

Define Comparison of borrowing costs based on annual percentage yield and the bond has a 20-year life

  Determining random sample from normal population

Random sample is attained from normal population with the mean of µ = 80 and standard deviation of σ = 8. Which of the following outcomes is more probable? Describe your answer.

  Financial management theory

More of financial management theory is based on assumption that individuals act rationally in their decision making. text has noted several areas where conclusion is that individuals do not act rationally.

  Differences between a direct-financing and sales type lease

Discuss the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee?

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!

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