User Account

All Pages

What will be the new beta of your portfolio

Assignment Help Finance Basics
Reference no: EM131100689

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta equal to 1.1. You are considering selling $100,000 worth of one stock which has a beta equal to 0.9 and using the proceeds to purchase another stock which has a beta equal to 1.4. What will be the new beta of your portfolio following this transaction?

Reference no: EM131100689

Questions Cloud

Role of the community organization : For this assignment, provide an outline with your goals, intentions, and approach for your Final Project. Identify the role of the Community Organization for your project. The organization I am using for this assignment is The Boys and Girls Club.
Consider the linear programming model : Consider the linear programming model for the general assignment problem given in Sec. 8.3. Construct the table of constraint coefficients for this model. Compare this table with the one for the general transportation problem (Table 8.6). In what ..
How much does the required return on the riskier stock : Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13 percent, and the risk-free rate of return is 7 percent. By how much does the required return on the riskier stock exceed the required return ..
Marketing plan guidelines : You will complete an analysis of the company you selected related to their B2B strategy. It is your responsibility to develop a "re-branding" strategy for your selected company that should consist of the following components:
What will be the new beta of your portfolio : You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta equal to 1.1. You are considering selling $100,000 worth of one stock which has a beta equal to 0.9 and using the proceeds to..
The nonbasic variables in the optimal bf solution : (b) Reformulate this problem as an equivalent transportation problem by constructing the appropriate parameter table.
How theory applies to this individual leadership approach : A detailed description of how the theory applies to this individual's leadership approach (e.g., if choosing transformational leadership, you should analyze and report on idealized influence, individualized consideration, etc.)
Calculate your portfolio''s new beta : Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12. Now, suppose you have decided to sell one of the stocks in your portfolio with a beta equal to 1.0 ..
Current web starting page on the computer : What is your current Web starting page on the computer you use most frequently (i.e., what's the address of the page that displays when you open your browser)? If you use more that one device or browser regularly, do they all use the same page or ..

Reviews

Write a Review

Finance Basics Questions & Answers

  How do you calculate what the dividend will be in five

the abc corporation has just paid a dividend of 5 per share. the dividend of this company grows at a steady rate of 6

  The balance sheet for ronlad corporation reported 168000

computing the number of unissued shares - the balance sheet for ronlad corporation reported 168000 shares outstanding

  The proportion of junior executives leaving large

the proportion of junior executives leaving large manufacturing companies within three years is to be estimated within

  The weekly mean income of a group of executives is 1000 and

the weekly mean income of a group of executives is 1000 and the standard deviation of this group is 100. the

  How the bank would go about assessing risk

Discuss in a two-page document the details of how the bank would go about assessing risk and the probability of default prior to extending credit to the company.

  Type of the option contracts

On Aug 10th, Ali expected that Tower stock price will increase during the coming two months. Therefore, he purchased an option for $4 per share; exercise price was $40 per share, On Sept 20th, Tower stock price was $50 per share.

  If you want to be able to withdraw 80000 per year forever

if you want to be able to withdraw 80000 per year forever beginning 30 years from now how much will you have to have in

  Wellpoint and anthem merger in 2003standard ratio analysis

wellpoint and anthem merger in 2003standard ratio analysis should be used to supplement the discussion of strength and

  The proposal lead to an income tax base

Under current law, if your capital losses exceed your capital gains, you can deduct as much as $3,000 of losses against other forms of income. In the wake of massive declines in the stock market, in 2009 Senator Orrin Hatch suggested that figure be i..

  The tax rate of 40% what is the wacc

Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a constant rate of 5% indefinitely. Today's market price/share is $45. Suppose also that your company has some bonds outstanding in the market sellin..

  Applying the three-step approach to compute wacc above

Applying the Three-Step approach to compute WACC above, compute the WACC using the following information.

  Will wal-mart need to increase reliance external borrowing

State any other key assumptions. How profitable do you anticipate Wal-Mart will be? Will Wal-Mart need to increase its reliance on external borrowing?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd