What will the expected return and beta on the portfolio

Assignment Help Financial Management

Reference no: EM132066041

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.

Reference no: EM132066041

Questions Cloud

Prepare a horizontal analysis : Prepare a horizontal analysis. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from balance sheet that may warrant investigation

What is the expected usd forward rate : Currently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The three-month interest rate is 8.0% per annum in the U.S.

Research a law enforcement agency : For this Assignment, research a law enforcement agency and a non-law enforcement agency that have responded to an incident/disaster.

Indicate that inflation or deflation has occurred : Does the value calculated for the GDP Deflator indicate that inflation or deflation has occurred?

What will the expected return and beta on the portfolio : What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?

Does this country have a trade deficit or a trade surplus : Use the information in the table below to answer each part below.

What is most you would be willing to pay for a investment : What is the most you would be willing to pay for a investment that will pay you $233 in one year, $99, in two years, and $588 in three years.

Provide the elements necessary for the conviction : In the midsized town of Centervale, there is no more crime than one might expect in a town of a similar size.

What is the net profit per unit to the seller of call option : What is the net profit per unit to the seller of the call option? At which spot price will the speculator break even?

User Account

All Pages