What is the beta of a portfolio with an expected return

Assignment Help Financial Management
Reference no: EM13870750

What is the beta of a portfolio with an expected return of 20% if the market risk premium is 15% and the risk free rate is 4%?

Reference no: EM13870750

Questions Cloud

Four-year term loan an annual interest rate : Dinero Bank offers you a $62,000, four-year term loan an annual interest rate of 7 percent. What will your annual loan payment be?
What is number of bonds needed to sell and after tax cost : Gillian Stationary Corporation needs to raise 600,000 to improve its manufacturing plant. It has decided to issue a 1000 par value bond with an annual percentage rate of 8.0 percent with interest paid semi annually and a 10 year maturity. Investors r..
How much will you have in your retirement account : What is your age today? (If you do not wish to reveal your actual age, assume that you are 25.) At the beginning of each year, starting today, you put $3,000 in an investment account earning 8% per year and you continue making $3,000 contributions ev..
Pitiful rate of interest you will receive on this account : Suppose you open a regular savings account at Bank of America. Go to their website and look up the pitiful rate of interest you will receive on this account. To avoid the $5 monthly fee, begin with a balance of $300 today. And then suppose you save $..
What is the beta of a portfolio with an expected return : What is the beta of a portfolio with an expected return of 20% if the market risk premium is 15% and the risk free rate is 4%?
What is the beta of stock : What is the beta of Stock A given the following returns of the market and Stock A in two states of the economy?
A portfolio is comprised of two stocks : A portfolio is comprised of two stocks, C and D. The expected return of the portfolio is 12%, the expected return of the market is 10%, and the risk free rate is 1.5%.Stock C’s beta is 1.2 and Stock D's beta is 0.9. What are the weightings of Stocks ..
Using probability distribution analysis : Using probability distribution analysis, Stock B is expected to return 15%. Stock B has a beta of 1.5, the risk free rate is 2%, and the expected return of the market is 12%. Is Stock B over priced or underpriced? Why
How large is the total interest payment over the three years : If you have $30,000 in a savings account earning 10%, how large an annuity can you draw out each year if you want nothing left at the end of 8 years? You borrow $6,000 at a 10% annual rate to be repaid in 3 equal payments at the end of each of the ne..

Reviews

Write a Review

Financial Management Questions & Answers

  Anticipates the dividiend annual compound growth rate

Joe investor has noted that the current price of MG Company is 61.50 and that its current P/E ratio is 15 and its current payout ratio for dividends is 40%. Based on his analysis of the next three years, Joe anticipates the dividiend annual compound ..

  Who is responsible for the make-or-buy decision

Who is responsible for the make-or-buy decision and what other suggestions can you make for improving the situation at Donley Brothers

  Identify appropriate industry specific ratios

Discuss the disadvantages of ratio analysis. You must use questions 1 to 3 and examples from your workplace to substantiate your discussion

  Determine the outstanding loan balance

Find the unknowns in Big Chuck's abbreviated cash budget and determine the outstanding loan balance as of September 30, after any repayments have been made.

  Stand-alone risk-diversifiable risk and market risk

Briefly but carefully distinguish between Stand-alone risk, diversifiable risk, and market risk. Of the three measures, which one is most relevant for stock valuation? Why?

  Owner of a call that expires in the money

Owner of a call that expires in the money

  WACC and Percentage of Debt Financing

Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 9%, and its common stock currently pays a $3.25 dividend per share (D0 = $3.25). The stock's price is currently $21.75, its dividend is expected t..

  You are looking at viacom bonds in which there remain 20

you are looking at viacom bonds in which there remain 20 years to maturity. the current price of a 1000 par bond is

  Find the monthly savings that equals this fv

Tyler is putting away $1,250 per month in an account earning 9.25% annually. the plane he would like to buy currently costs $430,000 and is expected to increase in price at an annual inflation rate of 3.25% how long will it take Tyler to save up the ..

  What is maximum percentage loss you can incur option buyer

What is the maximum percentage loss you can incur as an option buyer?

  To keep a list of complete details for all sources

1- Identify your company's mission, vision, objectives, and posted strategies. You may need to consult outside resources, so be sure to keep a list of complete details for all sources you use.

  Sales are expected to increase

Broussard Skateboard's sales are expected to increase by 25% from $7.8 million in 2013 to $9.75 million in 2014. Its assets totaled $4 million at the end of 2013. Baxter is already at full capacity, so its assets must grow at the same rate as project..

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