What portfolio weight do you need on the shares of ge

Assignment Help Finance Basics

Reference no: EM131977168

Question: Your friend, Dobson, manages the Formula Growth mutual fund. Dobson expects to earn 11% on his portfolio with a beta of 1.2. You only invest in shares of General Electric and T-Bills. You like GE because it was started in 1890 by Thomas Edison, the great American inventor, and it has a diversified portfolio of products including jet engines and MRI diagnostic imaging machines. The expected return of GE is 13% and its beta is 1.40. The expected return on T-Bills is 2%. If you construct your portfolio so that its risk is equal to the risk of Formula Growth, then what portfolio weight do you need on the shares of GE?

Reference no: EM131977168

Questions Cloud

Calculate the annual reduction in your bill due : Calculate the annual reduction in your bill due to (a) 5-year MACRS depreciation, and (b) straight line depreciation.

Create a monthly claim status summary report : Create a monthly Claim Status Summary report. He wants you to include in the report layout the insurance company number.

What is the best form of ownership : You and your friend want to invest in real estate, but your friend only wants to supply capital and not be involved in day to day management and related issues.

How many cubic meters of fluid weighs 100 pounds on earth : A fluid has a mass density of 1161 kg/m3. How many cubic meters of this fluid weighs 100 pounds on Earth? (1 kg weighs 2.2 pounds on Earth).

What portfolio weight do you need on the shares of ge : Your friend, Dobson, manages the Formula Growth mutual fund. Dobson expects to earn 11% on his portfolio with a beta of 1.2.

Journalize the entry to record the amount of cash proceeds : Saverin, Inc. produces and sells outdoor equipment. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.

What is the value of the earth magnetic field : In 2.70 ms the coil is rotated 90.0? so that its plane is parallel to the Earth's magnetic field. An average emf of 0.154 V is induced in the coil.

What is the price of the bond in given situations : Frankfort corporation has an outstanding 15% bond that pays interest semi-annually. the 30-year bond has 20 years until maturity and has a face value of $1,000.

Maximum distance between channels : If we need 70% of the action potential to reach a closed voltage-gated sodium channel adjacent to an open voltage-gated sodium channel in order for the closed

User Account

All Pages