What is the portfolio weight of each stock

Assignment Help Financial Management
Reference no: EM131915254

Stock J has a beta of 1.22 and an expected return of 13.26 percent, while Stock K has a beta of 0.77 and an expected return of 10.20 percent. You want a portfolio with the same risk as the market. Requirement 1: What is the portfolio weight of each stock? (Round your answers to 4 decimal places (e.g., 32.1616).) Stock J Stock K Requirement 2: What is the expected return of your portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Expected return of the portfolio %

Reference no: EM131915254

Questions Cloud

What is expected return of portfolio : What is the portfolio weight of each stock? What is the expected return of your portfolio?
What are the tax consequences of the two transfers : What are the tax consequences of the two transfers, assuming all the requirements of Sec. 351 are met
Develop a strategic communication plan : Describe and assess the impact of the implementation of the recommendation on the organizational structure and performance relative to the forecasted
What amount should be reported in the balance sheet : Sandhill purchased a patent from Vania Co. for $1,300,000 on January 1, 2015. What amount should be reported in the balance sheet for the patent
What is the portfolio weight of each stock : What is the expected return of your portfolio? What is the portfolio weight of each stock?
Discuss the signs and symptoms a patient may exhibit : Discuss the signs and symptoms a patient may exhibit when experiencing liver cirrhosis. Your response must be at least 200 words in length.
What exchange ratio between the two stocks : What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of £45 million?
Create and fill in the matrix for deming and juran : Based on what you've learned about the theories, create and fill in the matrix for Deming, Juran, and Crosby (just like the example used for PMI).
What would you do differently to bring about a change : Servant leadership is explored within different cultural contexts. What would you do differently to bring about a change in perception of servant leadership?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign currency receivable and recognizes any premium

Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium

  What is the immediate effect on the balance sheet

What is the immediate effect on the balance sheet? - What will the balance sheet look like after these transactions?

  Put-call-parity that european call is equivalent to european

We know for the put-call-parity that an European call is equivalent to an European put plus a future that have the same strike price and maturity assuming the underlying stock pays no dividends. Write down an explicit portfolio to take advantage of t..

  What is the constant annual-equivalent cash flow

A new furnace will cost $27,000 to install and will require maintenance of $1,500 a year. But it is more efficient than your old furnace and will reduce your heating oil consumption by 2400 gallons per year. What is the payback period and discounted ..

  What is the yield on two-year treasury securities

The real risk-free rate is 2.5%. Inflation is expected to be 1.75% this year and 5% during the next 2 years. What is the yield on 2-year Treasury securities?

  About management decisions and control in global environment

What’s Different About Management Decisions and Control in A Global Environment? What types of political risk would a company entering Cuba face? Provide an example. What is severance pay? List 5 guidelines for designing effective severance plans. Wh..

  What is the return from this investment

A parent decides to buy a two bedroom condo for $65,000 by putting 10% down and financing the rest for 15 years at an annual rate of 3.5%. What is the monthly payment? One bedroom is rented out to a roommate for $400 a month (payment received at the ..

  Under which scenario would he accumulate more money

(Show Your Work) A friend wants to retire in 30 years when he is 65. At age 35, he can invest $300/month that earns 6% each year. But he is thinking of waiting 15 years when he is age 50, and then investing $900/month to catch up, earning the same 6%..

  What does this imply about the forward premium

Assuming interest rates in country A are normally substantially higher than interest rates in country B. What does this imply about the forward premium or discount of country B's currency?  Would you frequently hedge your exposure to B's currency?

  Firm issued and sold dollar-denominated bond

A Japanese firm issued and sold a dollar-denominated bond in the United Kingdom. A U.S. firm issued bonds denominated in yen and sold the bonds in Japan. Which one of the following statements is correct?

  Calculate the beta of a portfolio

What is the beta of an asset with an expected return of 16%, if the risk-free rate of interest is 6% and the expected market portfolio risk premium is 6%? Accurate to two decimal places.

  Calculate the growth rate

The market capitalization rate for Admiral Motors Company is 9%. Its expected ROE is 15% and its expected EPS is $7. If the firm’s plowback ratio is 40%. Calculate the growth rate. what will be its P/E ratio?

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