What will be the portfolio new beta

Assignment Help Accounting Basics
Reference no: EM132697545

Problem - Pete's investment portfolio contains five stocks that have a total value equal to $40,000. The beta coefficient of this portfolio is 1.2. Pete wants to invest an additional $10,000 in a stock that has beta equal to 2.2. After he adds this stock, what will be the portfolio's new beta?

Reference no: EM132697545

Questions Cloud

Explain inquiry based teaching specific teaching strategy : Explain Inquiry Based Teaching specific teaching strategy. Explain an Essay type method assessment that aligns with the teaching strategy you chose.
Another look on plex systems cloud computing : How will SaaS affect large ERP companies such as SAP and Oracle? Will size and research capabilities allow SAP and Oracle to gain dominance of SaaS marketplace
Relationship between leadership and innovation : (a) Define the concept of innovation in the context of sport organizations
Remedy the situation of strategic drift : Can you please explain to me when strategic drift occurs, its effects on organisational strategy and what an organisation should do to remedy the situation of s
What will be the portfolio new beta : Pete wants to invest an additional $10,000 in a stock that has beta equal to 2.2. After he adds this stock, what will be the portfolio's new beta
Outline the meaning of brand equity : Outline the meaning of brand equity and explain how it relates to brand awareness and brand image.
Write an overview of the culinary beliefs and customs : Since the beginning of time, there have been many activities that have linked groups of people together: Protection from dangerous elements, animals or events.
What is the portfolio expected return : Rebecca invested $9,000 in a stock that has an expected return equal to 18 percent and $21,000 in a stock, What is the portfolio expected return
What are alienated followers and sheep followers : What are alienated followers and sheep followers? Why is is important to study followers in the workplace?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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