What is the portfolio beta

Assignment Help Financial Management

Reference no: EM13923938

You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 40 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .81, 1.19, 1.20, and 1.37, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM13923938

Questions Cloud

What is inflation what are the causes of inflation : What is inflation? What are the causes of inflation? Is inflation desirable and what can be done to control inflation in a market economy? What is the Consumer Price Index (CPI)? How has the CPI behaved since the year 2000? What have been the caus..

What is the projects profitability index : Vandelay Industries is evaluating a project that costs $1,350,000 and has a 20 year life. Depreciation will be straight-line to zero over the life of the project. Management believes they will be able to sell the equipment at the end of the project f..

Calculate the rate of return for each these investments : You’re trying to choose between two different investments, both of which have up-front costs of $100,000. Investment G returns $165,000 in 9 years. Investment H returns $285,000 in 16 years. Calculate the rate of return for each these investments.

Briefly discuss one study that does not support the apt : Briefly discuss one study that does not support the APT. Briefly discuss a study that does support the APT. Which position seems more plausible?

What is the portfolio beta : You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 40 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .81, 1.19, 1.20, and 1.37, respectively. What is the portfolio beta?

Experiencing rapid growth : Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 20 percent per year for the next 10 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 11 percent. If..

Define theoretical understanding to evidence given in case : The success of Apple is due to the strategic & visionary leadership style (e.g. transformative and charismatic leadership) adopted by Tim Cook. Discuss and support your answer by applying theoretical understanding to the evidence given in the case..

What are the net cash flows of the project : Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,490,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. What are the net cash flows of th..

Kinky copies may buy a high-volume copier : Kinky Copies may buy a high-volume copier. The machine costs $160,000 and will be depreciated straight-line over 5 years to a salvage value of $28,000. Kinky anticipates that the machine actually can be sold in 5 years for $38,000. Should Kinky buy t..

User Account

All Pages