What will be the beta of the new portfolio

Assignment Help Managerial Accounting
Reference no: EM132840114

Question - You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (i.e., your total investment is $200,000). The portfolio beta is equal to 1.2. You have decided to add another stock with a beta equal to 1.9 for $50,000. What will be the beta of the new portfolio?

Reference no: EM132840114

Questions Cloud

Find a press release from the last three months : Find a press release from the last three months of a company announcing bad news. It could be layoffs, a change in their business structure
What is the market risk premium : A stock has an expected return of 13.23 percent. The beta of the stock is 1.2 and the risk-free rate is 5 percent. What is the market risk premium
What is the relationship between belief and knowledge : What is the relationship between belief, knowledge, mythology, and religion? Where do mythology and religion intersect? Where do they diverge?
Define differentiation in a short paragraph : You are a fourth-grade teacher (or a grade level in which you are familiar) who has a very diverse class. In your class of 25 students, there are two students.
What will be the beta of the new portfolio : The portfolio beta is equal to 1.2. You have decided to add another stock with a beta equal to 1.9 for $50,000. What will be the beta of the new portfolio
How is the word myth used popularly : How is the word myth used popularly? For example, what does the statement, "It's a myth" mean? In contrast, how is the word myth used in the academic context?
Social work practice occurs at several different levels : Social work practice occurs at several different levels: micro, mezzo, and macro levels.
Prepare the journal entries of Gerald Ltd : Prepare the journal entries of Gerald Ltd to account for the convertible notes for each year ending 30 June under the following circumstances
Explain what boundaries should exist to interventions : What boundaries should exist to those interventions? Support your claims using "Resistance to Civil Government" AND one of the other assigned readings

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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