What will be the expected return and beta of your portfolio

Assignment Help Operation Management
Reference no: EM13956178

You are an investor in common stocks, and you currently hold a well-diversified portfolio that has an expected return of 8.5%, a beta of 1.15, and a total value of $99,000. You plan to increase your portfolio by buying 100 shares of Grand Co. at $110 a share. Grand has an expected return of 10% with a beta of 1.65. What will be the expected return and the beta of your portfolio after you purchase the new stock?

Reference no: EM13956178

Questions Cloud

What is that unique characteristic : The examples in the text show a unique characteristic (think: positive or negative sign) associated with how the PRESENT VALUE (PV) of a monetary sum (when given) should be expressed when you are solving for future value (FV) of that sum. What is tha..
Project for the ultimate recreational tennis racket : You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $480 per unit and sales volume to be 1,000 units in year 1; 1,250 units in year 2;..
What is the operating cash flow for project in year : You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $440 per unit and sales volume to be 1,000 units in year 1; 1,500 units in year 2; and 1,325 units in ..
What is the beta of the company for which she works : An investor has $25,000 invested in a stock that has an estimated beta of 1.2, and another $35,000 invested in the stock of the company for which she works. The risk-free rate is 4.65% and the market risk premium is 7.25%. The investor calculates tha..
What will be the expected return and beta of your portfolio : You are an investor in common stocks, and you currently hold a well-diversified portfolio that has an expected return of 8.5%, a beta of 1.15, and a total value of $99,000. You plan to increase your portfolio by buying 100 shares of Grand Co. at $110..
Before-tax operating costs-what will the cash flows : You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $70,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $19,900. The truck will have ..
Would it become a discount or premium bond : What is the value of a 10-year, $1,000 par value bond with a 10% coupon paid semi-annually if its required rate of return is 10%? What would its value be if, just after it had been issued, the expected inflation rate rose by 3% causing investors to r..
What is the value per share of your firms stock : Assume that the average firm in your company’s industry is expected to grow at 6% and its dividend yield is 7%. Your company expects its dividends to grow 50% this year, 25% the following year, after which growth returns to the 6% industry average. I..
Evaluate the present value of the introduction of new chip : Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. However, demand for the o..

Reviews

Write a Review

Operation Management Questions & Answers

  What facilities do the port and free zone offer

What facilities do the Port and Free Zone offer which attract companies and what benefits would your company, distributors, retailers and end consumers gain by holding inventory in the Free Zone?

  Identify the stages of team development

Identify the stages of team development. Define the main issues at each stage and the actions that the project can take to assist the team through each stage.

  Write an essay on quality of healthcare

Organizational culture plays an important part when creating teams for change. Organizational culture encompasses the values, beliefs, assumptions, myths, norms, goals and visions that are shared throughout an organization (Sollecito and Johnson,..

  How they have impacted our economy and our way of life

The film portrayed the "pirates of silicon valley" as half-hero, half villain. In one or two pages, give your thoughts as to how they shold be categorized. Relate your response to how they've impacted our economy and our way of life.

  Working in a foreign country could have its difficulties

Working in a foreign country could have its difficulties. These difficulties could change if you are there for a short term assignment as compared to long term assignment.

  Why is the npv of a relatively long- term project

why is the NPV of a relatively long- term project ( one in which its cash flow occurs in a distant future) more sensitive to changes in the WAAC than that of short term projects?

  What would point some possible conflicts among the key

what would point some possible conflicts among the key stakeholders interests and what steps would you recommend that he takes to best deal with them?

  Prepare a scope document for review

Review the project case. Determine the scope of the District 4 Production Warehouse Move project from the information provided in the case. Using the Project Scope Checklist, prepare a scope document for review and approval by the project sponsor ..

  Which optimistic time estimates can be used as crash times

If it were necessary to crash to 250 or 240 days, elucidate how would Hill do so, also at illustrate what costs? As noted in case, assume which optimistic time estimates can be used as crash times.

  How many work cycles should be timed to estimate

How many work cycles should be timed to estimate the average cycle time to within 2 percent of the sample mean with a confidence of 99 percent if a pilot study yielded these times (minutes): 5.2, 5.5, 5.8, 5.3, 5.5, and 5.1? The standard deviation..

  Focusing on financial impact & innovation

Pick out one topic or several topics listed below to discuss. Write up must include in text citations, APA format, minimum of 250 words, a reference list, and conclude with a question for other students to ponder.

  Write down the impact which will flexible work schedules

what impact will flexible work schedules have on employees commitment to their employers? on employee productivity? on

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