What will the expected return and beta on portfolio

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Reference no: EM131982059

1. Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Do not round your intermediate calculations.

a. 12.41%; 1.56 b. 12.05%; 1.25 c. 12.29%; 1.48 d. 13.98%; 1.28 e. 9.40%; 1.34

2. The Meat Mart has computed its fixed costs to be $.38 per pound given an average daily sales level of 500 pounds. It charges $5.59 a pound for top-grade ground beef. The variable cost per pound is $2.64. The tax rate is 34 percent. The accounting profit breakeven point is 211.5 pounds per day. What is the amount of the depreciation expense?

Reference no: EM131982059

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