What is the portfolio weight of each stock

Assignment Help Financial Management
Reference no: EM131088201

Stock J has a beta of 1.29 and an expected return of 13.61 percent, while Stock K has a beta of 0.84 and an expected return of 10.55 percent. You want a portfolio with the same risk as the market.

Requirement 1: What is the portfolio weight of each stock? Stock J Stock K

Requirement 2: What is the expected return of your portfolio?

Reference no: EM131088201

Questions Cloud

Establishment of false claim under the false claims act : What are five elements pertaining to the establishment of a false claim under the False Claims Act? HIPAA privacy standards were designed to accomplish what three broad objectives?
Organization health care services : What services would you offer to these people? What promotional strategies would you use to promote your organization's health care services to these people? How will their financial situation affect your pricing plan?
Why are these three requirements the most important : Why are these three requirements the most important?
Company to pay dividends with borrowed money : Is it good or bad for a company to pay dividends with borrowed money? Lets say a company has had regular cash dividends to its stockholder for over 50 years. In it's current operating year, the company experienced a severe cash flow crisis. Would it ..
What is the portfolio weight of each stock : Stock J has a beta of 1.29 and an expected return of 13.61 percent, while Stock K has a beta of 0.84 and an expected return of 10.55 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock? Stock J S..
Represent the cultural emphasis on sacred ideologies : How do the main sacred genres of this time (chant, the mass ordinary, etc.) represent the cultural emphasis on sacred ideologies that exemplified the Middle Ages?
Problem regarding the economic interests : Which of the following arguments against a firm being socially responsible indicates the belief that businesses are being socially responsible when they attend only to economic interests?
Explore a range of issues around it professionalism : A simple scan of any day's news headlines will usually identify at least one instance where Information Technology has been used inappropriately, or where people within the IT industry have acted unprofessionally.
Organizational environment in management : What is Organizational Environment in management? Use simple and concise definition

Reviews

Write a Review

Financial Management Questions & Answers

  Overseen the use of the lot for daily commuter parking

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000. At the time of the purchase, the company spent $50,000 to grade the lot and another $4,000 to build a small buildi..

  Planning to save for retirement

You are planning to save for retirement over the next 35 years. To do this, you will invest $840 a month in a stock account and $440 a month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account will ..

  What will be their optimal cash return point

Hollywood Shoes would like to maintain their cash account at a minimum level of $54,000, but expect the standard deviation in net daily cash flows to be $4,400; the effective annual rate on marketable securities to be 7.00 percent per year; and the t..

  Overhead cost to the patient services departments

St. Benedict's Hospital exercise: . 6.5 Now, assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and pa..

  What is the overall after-tax cost of the debt financing

A recent leveraged buyout was financed with $50M. This amount comprised of partner’s equity capital of $12M, $20M unsecured debt borrowed at 7% from one bank, and the remainder from another bank at 8.5%. What is the overall after-tax cost of the debt..

  How do you do this on a financial calculator

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.03%, how much should you be willing to pay for the bond?

  What must the liquidating dividend be

JJ Industries will pay a regular dividend of $0.75 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 12 percent, and the current share price is $75, what..

  What is the value of this investment

Terrence has an investment that will pay $250 to him next year and increase that amount by 1.25 percent annually. The payments are expected to go on indefinitely and the discount rate is 6.5 percent, compounded annually. What is the value of this inv..

  The nominal return on your investment

You want to have $6 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 9 percent and the inflation rate is 5.4 percent. What real amount must you deposit each year to achieve your goal?

  The larger the portion of a firm''s sales that are on credit

the larger the portion of a firm's sales that are on credit, the

  What is expected return on the portfolio

You own a portfolio that has $2,100 invested in Stock A and $3,350 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?

  Number of absences of two to three weeks

John is one of the employees of a firm in which you are a partner. He suffers badly from arthritis. He has been employed for 10 years. However, he has had a number of absences of two to three weeks' duration over the past three years.

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