What is her portfolios beta

Assignment Help Financial Management
Reference no: EM13881269

An individual has $50,000 invested in a stock with a beta of 0.4 and another $45,000 invested in a stock with a beta of 1.9. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.

Reference no: EM13881269

Questions Cloud

Considering change in its capital structure : Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 7%, and its stock price is $40 per share with 2 million shares outstanding. BEA is considering increas..
How can a security guard in a warehouse be considered : How can a security guard in a warehouse be considered an important component of a company accounting system?
Prepare any journal entry necessary to correct the error : The following entry was recorded on February 1, 2013, when the semiannual interest was paid:
What is her portfolios beta : An individual has $50,000 invested in a stock with a beta of 0.4 and another $45,000 invested in a stock with a beta of 1.9. If these are the only two investments in her portfolio, what is her portfolio's beta?
How are sales invoices used in the preparation of credit : How are sales invoices used (in a manual system) in the preparation of credit memos?
Calculate the cost of debt-cost of new common stock : Jury company wants to calculate the component costs in its capital structure. Common stock currently sells for $ 33 And is expected to pay a dividend of $50. Jury's dividend growth rate is 8% and flotation cost is $1.25. Calculate the cost of debt, c..
Analyzing the consumer market : Analyzing the Consumer Market (product assign is Samsung gear 2 smart watch) and Describe and discuss the cultural factors that have the most influence on consumers purchasing your product/service (Samsung gear2 smart watch)
How many shares does it have after the recap : Dye Trucking raised $260 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.5. If Dye had 80 million shares of stock before the recap, how many shares does it have after the recap?

Reviews

Write a Review

Financial Management Questions & Answers

  Retirement account-how much will she have ten years later

An individual has $110,000 in a retirement account. Each month she deposits $1,000 while earning 5% a year on her money. How much money will be in the account in 10 years? How much of this amount is due to the $110,000 that she began with and how muc..

  States that the real rate of interest is same all over world

________ States that the real rate of interest is the same all over the world.

  Fully amortizing mortgage loan

A fully amortizing mortgage loan is made for $100,000 at 5 percent interest for 25 years. Payments are to be made monthly.

  The market interest rate

Your child (John) has come to you for advice. He is about to enter college and has two options open to him. His first option is to study petroleum engineering. If he does this, his undergraduate degree would cost him $20,000 a year for four years. Wh..

  What is the effective annual interest rate of trade credit

The D.J. Masson Corporation needs to raise $400,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 1/10, net 90, and it currently pays on the 10th day and takes discounts. What is the effective annual ..

  Rapid growth-what is projected dividend for the coming year

Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 12 percen..

  What is the exact time and what is the interest

Complete the following, using exact interest. (Use table value.) (Use 365 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.) What is the exact time? What is the interest?

  Why they have such a high rate of disability claims

You are benefits consultant reviewing the disability coverage’s offered by one of your client firms. ."The plan is not integrated with workers' compensation or Social Security benefits at all. Explain to the firm why they have such a high rate of dis..

  What is current yield on bonds and effective annual yield

Bourdon Software has 8.4 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107 percent of par. What is the Current Yield on the bonds? What is the Effective Annual Yield?

  Part of business is selling modems for network connection

Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing. A modem costs you $150 and holding a modem in inventory costs..

  Determine continuously compounded risk-free interest rate

Consider four 5-year European options with different strike price. Determine the continuously compounded risk-free interest rate

  What is the operating cash flow for the project

You are evaluating a project for your company. You estimate the sales price to be $220 per unit and sales volume to be 3,200 units in year 1; 4,200 units in year 2; and 2,700 units in year 3. The project has a three-year life.

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