What is the beta of portfolio whose expected return

Assignment Help Financial Management
Reference no: EM13849874

What is the beta of a portfolio whose expected return is 10% when the risk-free rate is 3% and the market risk premium is 5%?

Assuming market beta is 1.

Reference no: EM13849874

Questions Cloud

Explain the concept of business ethics in brief : Explain the concept of business ethics in brief its importance and advantages?
Depending on economic conditions : Companies make bonds callable A. In the event interest rates increase. B. In the event interest rates drop. C. To protect the buyers of the bond in the event the company goes bankrupt. D. So the bond can be converted to common stock. E. A or B could ..
What is the freight rate in both volume and weight : If your freight rate is quoted as USD. 10/per freight ton and the weight of the package is 2,500 kilograms, what is the freight rate in both volume and weight?
Find the future value of the annuities : Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities.
What is the beta of portfolio whose expected return : What is the beta of a portfolio whose expected return is 10% when the risk-free rate is 3% and the market risk premium is 5%?
How can the information from an activity-based : How can the information from an activity-based costing system guide improvements in operations and in decisions about products and customers? 300-400 words long
What is the average order size : Liverpool is targeting a CSL of 95 percent and uses a periodic review policy under which it reorders consoles every eight weeks. What is the average order size?
Assume that coupon payments are semi-annual : Duke Power is about to issue a new 10 year bond with a coupon rate of 6.25%. The bond has been rated AA by Standard & Poor's. You observe that a similar bond, recently issued by a power company in Virginia is priced such that its yield-to-maturity is..
Role of stakeholders in this environment : Suppose you are working with the stakeholders of an organization that has a dynamic and complex environment. How might the role of stakeholders in this environment differ from a more stable environment

Reviews

Write a Review

Financial Management Questions & Answers

  Effectiveness of any compensation system to attract

The effectiveness of any compensation system to attract, retain and align employee behavior and performance with the objectives of the enterprise is dependent upon management credibility. If you were advising a CEO on steps he or she could take to en..

  Bond issue-what is the yield to maturity

Big Rapids Homes has a bond issue outstanding that pays $60 annual coupon paid semi-annually and matures in 30 years. The bonds have a par value of $1,000 and a quoted market price of 95.5. What is the yield to maturity?

  Compute the incremental income after taxes

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $150,000 if credit is extended to these new customers. Of the new accounts receivable generated, 5% will prove to be..

  Determine the standard deviation of the portfolio

A portfolio of YYC Inc. and YEG Inc. stocks has an expected return of 11%. Use the information in the table to determine the standard deviation of the portfolio (note that the only assets in the portfolio are the two stocks in the Table below)

  The account paid interest compounded annually

John Adams opened a bank saving account with $5,000 15 years ago. Today, the account balance is $$12,000. If the account paid interest compounded annually, how much interest on interest was earned?

  Annual interest rate to start your new business

Your bank offers to lend you $230,000 at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much of the principal would you be paying back during the 3rd year?

  What is the retailers effective cost of trade credit

A large retailer obtains merchandise under the credit terms of 3/20, net 40, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  Common stock appears on

Common stock appears on:

  Compromising or contradiction its brand ethic credentials

How should a Western Multinational Enterprise develop its business in Myanmar? To more precisely, How should a business corporation achieve its market objectives in Myanmar without compromising or contradiction its brand ethic credentials?

  What is the current market price of the bonds

Silver Dart Lodge Inc. sold an issue of 25-year, $1,000 par value bonds to the public. The bonds has a 7.25% coupon rate and pays interest annually. The current market rate of interest on the Silver Dart Inc. bonds is 6.5%. What is the current market..

  Effective annual cost of the least expensive type of credit

Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; What is the ..

  Premium bond making semi-annual payments

Bond X is a premium bond making semi-annual payments. The bond pays a 7 percent coupon, has a YTM of 5 percent, and has 13 years to maturity. Bond Y is a discount bond making semi-annual payments. This bond pays a 5 percent coupon, has a YTM of 7 per..

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