What will be the new portfolio beta

Assignment Help Financial Management
Reference no: EM13917479

You have a portfolio with a beta of 1.59. What will be the new portfolio beta if you keep 86 percent of your money in the old portfolio and 14 percent in a stock with a beta of 0.58? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM13917479

Questions Cloud

Considering a new three-year expansion project : Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,670,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..
Estimate the number of repetitions that new service : Estimate the number of repetitions that new service worker Irene will require to achieve standard if the standard is 18 minutes per repetition. She took 30 minutes to do the initial repetition and 25 minutes to do the next repetition
Compute the yield to call percentage : A 4.00 percent coupon municipal bond has 12 years left to maturity and has a price quote of 106.80. The bond can be called in eight years. The call premium is one year of coupon payments. Compute the bond’s current yield percentage. Compute the yield..
Estimate the number of repetitions : Estimate the number of repetitions each of the workers listed in the following table will require to achieve a standard time of 25 minutes per repetition. Time is inminutes.
What will be the new portfolio beta : You have a portfolio with a beta of 1.59. What will be the new portfolio beta if you keep 86 percent of your money in the old portfolio and 14 percent in a stock with a beta of 0.58? (Do not round intermediate calculations and round your answer to 2 ..
This debt must be repaid in two equal installments : ABC Corp has the opportunity to invest $1 million now (t=0) and expects after-tax returns of $600,000 in t=1 and $700,000 in t=2. The project will last for two years. The appropriate cost of capital is 12% with all-equity financing, the borrowing rat..
Estimate the additional amount of time needed to finish : The fifth unit of a 10 unit job took five hours to complete. The sixth unit has been worked on for two hours, but is not yet finished. Estimate the additional amount of time needed to finish the 10  unit job if the work has a 75 percent learning r..
What is the variable cost per unit-cash break-even point : Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.80 per unit, and the variable labor cost is $6.50 per unit. a. What is the variable cost per unit? what is the cash break-even point? If depreciation is $500,..
Operating leverage at financial break-even level of output : A project has the following estimated data: price = $50 per unit; variable costs = $32 per unit; fixed costs = $14,000; required return = 10 percent; initial investment = $20,000; life = four years. Break-even quantity What is the degree of operating..

Reviews

Write a Review

Financial Management Questions & Answers

  The amount of funds released by the lockbox arrangement

J-Mart, a nationwide department store chain, processes all its credit sales payments at its suburban Detroit headquarters. The firm is considering the implementation of a lockbox collection system with an Atlanta bank to process monthly payments from..

  Bond funds will be in direct marketing channel without loads

Why do you think the mutual fund industry has experienced a decline in front-end sales loads since the introduction of 12b-1 fees? Do you believe that most sales of equity and bond funds will be in the direct marketing channel without loads or 12b-l ..

  Difference between estimate and budget at completion

What is the Estimate at Completion? What is the significance of the three methods of forecasting EAC? What is the difference between Estimate at Completion and Budget at Completion (BAC)? Under what circumstances will they be equal?

  What motivation encourages commercial banks

What motivation encourages commercial banks to make variable rate mortgages? Why are variable rate mortgage rates normally below fixed mortgage rates? As the level of rates declines, would you expect banks to increase or decrease the adjustable rate ..

  Time value of money

Time Value of Money calculations always use compound interest - You must adjust the interest rate and the number of periods to be consistent with compounding periods.

  What would be the potential implications for delta

When is it appropriate to use the firm's weighted average cost of capital (WACC) to evaluate a proposed investment and what would be the potential implications for Delta if WACC is used to evaluate the pet supply project?

  What are the macaulay duration and modi?ed duration

A Treasury bond that settles on October 18, 2013, matures on March 30, 2032. The coupon rate is 5.30 percent and the bond has a 4.45 yield to maturity. What are the Macaulay duration and modi?ed duration?

  How much do you have to pay each month

Suppose by the time you graduate your student loan will accumulate to $33,000, the national average for college graduates of 2014. If you plan to pay back the loan in 5 years with equal monthly payment, and assume the interest rate is 6% compounded m..

  Find the internal growth rate and sustainable growth rate

Find internal growth rate. sustainable growth rate. sustainable growth rate if it pays out 42% of its net income as a dividend.

  What is the exact time and what is the interest

Complete the following, using exact interest. (Use table value.) (Use 365 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.) What is the exact time? What is the interest?

  Water filtration system to assist in circuit board

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $60,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and mainten..

  What is the diversifying among different kinds of assets

What is the diversifying among different kinds of assets know as?. a) Portfolio funding. b) capital asset classification. c) Asset allocution. d) Multi-diversification.

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