What will be new portfolio beta

Assignment Help Financial Management

Reference no: EM131844401

1. Investment X has the following projected cash flows over the next four years: Year Amount 1 $6500 2 $7500 3 $3100 4 $1900 If the opportunity cost for an investment of this level of risk is 8.1%, what is the most that you should be willing to pay for it?

2. During a period of economic growth we would expect interest rate to increase, Why?

3. You have a portfolio with a beta of 1.15. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.34? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

New portfolio beta

Reference no: EM131844401

Questions Cloud

What limitations did encounter in your research : What limitations did encounter in your research? How did your results compare to what has already been published on careers in the sub-field you studied.

Workplace or in a significant personal relationship : Think about a conflict you have experienced either in the workplace or in a significant personal relationship. Describe the situation briefly

Do you think that audience is a major factor here : Do you think that audience is a major factor here? Do different kinds of news consumers look for different elements in their favorite news providers?

List and explain five exceptions to the exclusionary rule : Identify the difference between the subjective and objective tests of entrapment. List and explain five exceptions to the exclusionary rule.

What will be new portfolio beta : What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.34?

Theory of constructivism : Regarding the theory of constructivism, which of the following statements was NOT part of that theory

What issue are raised when an inmate facing lethal injection : What issues are raised when an inmate facing lethal injection contends that the method is unconstitutional because the procedure causes unusual pain and sufferi

What could happen if the organization did not logically link : What could happen if the organization did not logically link its logistics decisions to the needs of its customers? Initial response to the discussion question.

Consider coupon bond with coupon rate : Consider a coupon bond with coupon rate 5 percent and a face value of $1000 and a maturity date of January 1, 2020.

User Account

All Pages