What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM131022532

You own 500 shares of Stock A at a price of $70 per share, 485 shares of Stock B at $90 per share, and 850 shares of Stock C at $43 per share. The betas for the stocks are .6, 1.4, and .8, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131022532

Questions Cloud

Does the project make sense at a discount rate : Suppose a project costs 200,000 today, 100,000 next year and 15000 to dispose of it in ten years when the project is discontinued. Once finished three years from today, it is expected to generate a net income of 40000 per year until it is discontinue..
The warehouse is debt-free : Wexter's purchased a warehouse for $499,000 six years ago. Four years ago, repairs costing $132,000 were made to the building. The annual property taxes are $41,000. The warehouse has a current book value of $268,000 and a market value of $529,000. T..
What is the net benefit of a project to remove the dam : There is a proposal to remove a hydro dam in the state of Washington. The cost to the government of removing is the loss of $5,000,000 per year in profits from the sale of electricity for the next seven years. If the dam is removed, the salmon fisher..
What is the current yield on bond-value or cost of the bond : A bond has a coupon rate of 5.375%, pays coupons semiannually, and has a maturity of 5 years. If the yield to maturity is 5.80%, calculate the current cost of a bond with a par value of $1000. What is the current yield on the bond? Assume that one ye..
What is the beta of your portfolio : You own 500 shares of Stock A at a price of $70 per share, 485 shares of Stock B at $90 per share, and 850 shares of Stock C at $43 per share. The betas for the stocks are .6, 1.4, and .8, respectively. What is the beta of your portfolio?
Characteristics of both assets and risk-aversion of investor : Suppose there are two assets available to an investor. One is risk-free and has a return of 3 percent. The other is risky and has an expected return of 8 percent and a variance of 0.05. The investor’s utility is given by U(r) = (2/3) E(r) − (1/2) AV ..
Explain the evolution of corporate governance : Explain the evolution of corporate governance. What problems developed? What are the current trends? What are the major criticisms of boards of directors? Which single criticism do you find to be the most important? Why?
What would capital gains and dividend yield be for year : You have been asked to value a stock that will not pay a dividend until three years from now. At that time you estimate the dividend will be $1.40. You estimate that it will grow by 10% for the two following years and at 5% thereafter. What would the..
How much implicit interest would be earned on this bond : Assume a 20-year $1,000 par value zero-coupon bond with an annual YTM of 4% and semiannual compounding. How much implicit interest would be earned on this bond in year 1? How much in year 12?

Reviews

Write a Review

Financial Management Questions & Answers

  Bond valuation-require effective annual interest rate

You are considering a 30-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate.

  Firm 2012 operating cash flow

What was the firm's 2012 operating cash flow, or OCF?

  Unbiased expectations theory of structure of interest rates

Suppose we observe the following rates: 1R1 = 3%, 1R2 = 5%. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

  Distributors has an unlevered cost of capital

Johnson Tire Distributors has an unlevered cost of capital of 12 percent, a tax rate of 34 percent, and expected earnings before interest and taxes of $2,000. The company has $4,000 in bonds outstanding that have a 7 percent coupon and pay interest a..

  The registrar of a university with a population

The registrar of a university with a population of N- 4,000 full-time studentsis asked by the president to conduct a survey to measure satisfaction with the quality of life on campus. The following table contains a breakdown of the 4,000 registered f..

  Firm estimates that its cost for employer sponsored

An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 5 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the ..

  Indicative of a flexible short-term financial policy

Which one of the following is most indicative of a flexible short-term financial policy?

  What is the economic ordering quantity

Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $2 per order, and carrying costs of $1.60 per unit. Wha..

  Cost of capital equal to the expected return on the market

cost of capital equal to the expected return on the market which is 12%. project Used books 0.85 Beta 12% expected return. if the projects are mutually exclusive, which one would be accept.

  Prepared to make monthly payments

You’re prepared to make monthly payments of $240, beginning at the end of this month, into an account that pays 9 percent interest compounded monthly. How many payments will you have made when your account balance reaches $63,000?

  Earnings expectations play in quality of earnings

In Arthur Levitt's speech, referred to in the opening quote, he also said: "I fear that we are witnessing erosion in the quality of earnings and therefore, the quality of financial reporting.  What role does financial analysts' earnings expectations ..

  Interests for federal estate tax marital deduction

Jake and Hannah have been married for 45 years at the time of Jake’s death. They have two surviving adult children, Susie and Tony. All the following transfers from Jake’s estate to Hannah are non deductible terminable interests for federal estate ta..

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