What is the beta of this portfolio

Assignment Help Finance Basics
Reference no: EM131132507

Consider the information in the following table

2034_l.jpg

A. What is the beta of this portfolio?

B. What (specifically) would you do to bring this portfolio back to a target beta of1.10?

Reference no: EM131132507

Questions Cloud

Prepare a stockholders equity section at 31 december 2010 : Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J2 for the posting reference.)
Compute brisbane basic and diluted earnings per share : Compute Brisbane's basic and diluted earnings per share for 2006.
Times interest earned ratio the assets turnover ratio : Times Interest Earned Ratio which is (net inc + int exp + tax exp)/int exp. Rec Turnover Ratio which is (net credit sales/avg net rec) "For the average use 2007 & 2006 data. The assets Turnover ratio which is (net sales/avg total assets)
What rate of return should investors expect on this fund : The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?
What is the beta of this portfolio : What is the beta of this portfolio? What (specifically) would you do to bring this portfolio back to a target beta of1.10?
Calculate the 13 basic ratios found in the chapter : Using the financial statements for the Niara Calendar Company, calculate the 13 basic ratios found in the chapter.
How much cash was collected from making sales and collecting : Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?
What is the cost of equity from retained earnings based : Assume that you are a consultant to Morton Inc. and you have been provided with the following data: D1 = $1.00; P0 = $25.00; and g = 6% (constant). What is the cost of equity from retained earnings based on the DCF approach?
What is the cost of equity from retained earnings : Heino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: rRF = 5.0%; MRP = 5.0%; and b = 1.1. Based on the CAPM approach, what is the cost of equity from retained earnings?

Reviews

Write a Review

Finance Basics Questions & Answers

  The initial outlay for purchase and installation of equipmen

You are considering a project which is projected to have revenues in the next five years of $3, $4, $5, $5, and $2 (million). Variable costs are assumed to be 50% of revenue and fixed costs are $1.4 million per year. The firm's WACC is 7%. The initia..

  What is the variance of the returns on the stock

If the economy is normal, Charleston Freight stock is expected to return 16.5 percent. If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the p..

  An angel investor is considering investing in one of two

1.a generous university benefactor has agreed to donate a large amount of money for student scholarships. the money can

  You buy a zero coupon bond at the beginning of the year

you buy a zero coupon bond at the beginning of the year that has a face value of 1000 a ytm of 9 percent and 12 years

  Calculate this ecb problem on a financial calculator

what is the borrower's effective borrowing cost (effective rate) if he plans on holding the loan for 7 years?

  Assume that kish inc hired you as a consultant to help

assume that kish inc. hired you as a consultant to help estimate its cost of common equity. you have obtained the

  Showing profit/loss on crop, livestock and total profit

Depreciation is to be provided for at the rate of 20% and 10% per annum for motor vehicles and farm implements respectively on the book values. Buildings to be depreciated at 2% per annum on cost.

  Explain the value of the public communication

The Corporation with which you are currently employed is experiencing a financial crisis. The CFO has suddenly resigned and no one is discussing the reasons why.

  Whatrsquos the best way for a company to grow suppose a

whatrsquos the best way for a company to grow? suppose a company would like to move from a regional company to a

  Calculation of after-tax cost of debt and cost of equity

Calculation of After-Tax Cost of Debt and Cost of Preferred Stock and Cost of Equity and WACC under CAPM

  Present value at different interest rates

Wainright Co. has identified an investment project with the following cash flows. What is the present value at 16 percent?

  What is the standard deviation of your portfolio

Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasbile CAL. What is the standard deviation of your portfolio? And what is the proportion invested in the stock fund?

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