User Account

All Pages

What is the fund overall-weighted average

Assignment Help Finance Basics
Reference no: EM131721365

Please submit in Excel

1.The Terrapins Investment Fund has a total investment of $500 million in five stocks.

Stock              Investment (millions)  Beta

   1                             $150                 .6

   2                              120                1.2

   3                                80                3.0

   4                                90                1.8

   5                                60               1.0

Total                           $500

What is the fund's overall, or weighted average, beta?

3. Refer to the previous problem. If the risk-free rate is 12% and the market risk premium is 6%, what is the required return on the Terrapins Fund?

Reference no: EM131721365

Questions Cloud

What advantages are there to being the market leader : Three years ago, Chris Dees launched a medical products company that specializes in providing products for people with diabetes.
What is the expected return of mgm stock : Suppose MGM has a beta of 3.32 and AEP has a beta of 0.28. If the risk-free interest rate = 4.0% and the market risk premium = 10%, according to the CAPM:
Construct a system of ethics can be derived : Construct a system of ethics as they can be derived from Wollstonecrafts discourse in A Vindication of the Rights of Women.
Multichannel distribution systems gaining popularity today : Why are multichannel distribution systems gaining popularity today? Describe the advantages and disadvantages of using them.
What is the fund overall-weighted average : Refer to the previous problem. If the risk-free rate is 12% and the market risk premium is 6%, what is the required return on the Terrapins Fund?
Discuss the textbook author suggest for leaving employees : What policy does the textbook author suggest for leaving employees
What is the objective of the product promotion : How does the promotion mix differ for the two products based on the position on the life cycle and what is the objective of the product’s promotion?
What is the dividend yield-capital gains yield : What is the dividend yield, capital gains yield and realized return from this stock?
Primary purposes of conducting intellectual property audit : What are the two primary purposes of conducting an intellectual property audit? What risks does a company run if it doesn't periodically conduct.

Reviews

Write a Review

Finance Basics Questions & Answers

  Evergreen flight extenders has a bond with a coupon rate

evergreen flight extenders has a bond with a coupon rate of 7.5 maturing in 10 years at a value of 1000 and current

  Explain why fixed differential rate is much larger

Explain why fixed differential rate is much larger than floating differential rate in swap. For example, the fixed might be 2%, but the floating differential rate is only 0.3%

  What are the time dimensions of the income statement

What are the time dimensions of the income statement

  Calculate the required rate of return

Suppose the company in #1 is considering the following expansion projects. How would you calculate the required rate of return to use in the NPV analysis.

  What recommendations would you make to management

This Mini Case is available in My Finance Lab. Superior Europe, is a medium-sized company, located in the Netherlands, and has successfully been doing business.

  Assessing corporate performance

Financial performance measures are vitally important to assessing corporate performance. However, financial measures are primarily backward looking in that they measure the results of past actions, and do not always give a reliable indication of f..

  Finance-interest and retirement

How much can you spend for each year after you retire? Your first withdrawal will be made at the end of your first retirement year.

  Develop a strategic plan for company

Do you think financial managers should develop a strategic plan for their company? Why?

  Describe current global economic conditions

Describe current global economic conditions and their effect on local macroeconomic indicators in your selected country. Consider forecasts for population growth, GDP growth, GDP per capita growth, export growth, and sales growth

  What is mias self-employment tax

Mia is self employed as a consultant, During 2011, Mia earned $180,000 in self employment income. What is mia's self-employment tax?

  Mcdowell industries sells on terms of 310 net 30 total

mcdowell industries sells on terms of 310 net 30. total sales for the year are 912500. forty percent of the customers

  Problem about revenue recognition

Our sources of revenues include: (1) software, which includes new software license revenues earned from granting licenses to use our software products and fees from cloud software subscription offerings, and software license updates and product su..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd