What is the portfolio beta

Assignment Help Financial Management
Reference no: EM13895392

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .91, 1.24, 1.08, and 1.26, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM13895392

Questions Cloud

Calculate the amount of the last payment : Earl obtained a loan for 15000 dollars. He will pay it back in 19 months with an interest rate of 14 yearly compounded monthly. Each payment will be $400 larger than the previous payment. Calculate the amount of the last payment.
What is the beta of each of the stocks : Consider the following information: Stock Return if Market Return Is: Stock –10% +10% A 0 +20 B –20 +20 C –30 0 D +15 +15 E +10 –10 What is the beta of each of the stocks?
Conduct sensitivity analysis to determine sensitivity of NPV : Use Excel formulas to do all the calculations, that is, do not calculate anything on a calculator and just input the answer in your file. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback. Conduct a sensitivity analy..
What is the portfolio beta : You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .91, 1.24, 1.08, and 1.26, respectively. What is the portfolio beta? (Do not round ..
Expected return on your investments over whole period : You are 30 years old today and planning to retire at age 62. You want to plan your finances for living 35 years past age 62 and die dead broke. You determine you will need $3000 per month from age 62 for the 35 years. Your plan is to go live in the t..
Call premium plus put premium : An Asset currently trades at price S0. Let V0 be the current price (call premium plus put premium) of an at-the-money straddle on A expiring in one month. You have an initial capital amount of C0 and execute the following strategy. - keep C in cash w..
Calculate the bonds price in details : In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond's price in details. What is the cupon rate / what is the YTM?
Discuss the risk–return trade-offs of the two projects : Blair Gasses and Chemicals is a supplier of highly purified gases to semiconductor manufacturers. A large chip producer has asked Blair to build a new gas production facility close to an existing semiconductor plant. Find the breakeven cash inflow fo..

Reviews

Write a Review

Financial Management Questions & Answers

  Capital budgeting is different for multinational operations

Currency exposures are generally more difficult to identify and measure than to hedge. React to this statement. Is it true or false and why. Describe the primary ways to protect against the adverse consequences of political risk. Describe how capital..

  Several proposed independent projects

Bell Weather Goods has several proposed independent projects that have positive NPVs. However, the firm cannot initiate any of the projects due to a lack of financing. This situation is referred to as:

  District has bonds outstanding with coupon rate

Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 26 years to maturity. The yield to maturity on these bonds is 4.3 percent and the bonds have a par value of $10,000. What is the price of the bo..

  Liquidity premium in order to purchase longer-term security

The liquidity premium theory of the term structure helps explain why on average, the Treasury yield curve typically slopes upward. The liquidity premium theory relies on the fact that the longer the maturity, the less liquid the bond and thus, the hi..

  What are the firms average and marginal taxes

Corporate income tax/ Meyer Inc has taxable income (earnings before taxes) of 300,000. Calcualte Meyer's federal income tax liability using the tax table . What are the firm's average and marginal taxes?

  Issue of preferred stock outstanding

Lane, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?

  In working out your responses to the discussion question

in working out your responses to the discussion question you should choose examples from your own experience or find

  Share in free cash flows to equity

A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow at 6% per year. If the investor’s required return is 14%, what is the anticipated value of the firm at the end of 3 years?

  Liquidity planning requires monitoring deposit outflows

Liquidity planning requires monitoring deposit outflows. In each of the following situations, which of the outflows are discretionary and which are not? If the outflow is not discretionary, is it predictable or unexpected? a. In April, a farmer draws..

  Liabilities and equity categories

Broncs Bank has the following liabilities and equity categories: What would be the bank’s total liabilities and capital if owners’ capital were 75% the size of Other Liabilities? If Total Liabilities and Capital were 18 million what would be the size..

  The relationship between discounting and compounding

Your task this week is to teach Grammy and the board the time value of money and its related concepts. She would like you to address several specific questions to demonstrate the use of time value of money techniques. What is the relationship between..

  Inconsistent with observed patterns in price changes

A random walk for stock price changes is inconsistent with observed patterns in price changes. If the stock market follows a random walk, price changes should be highly correlated. If the stock market is weak form efficient, then stock prices follow ..

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