What will the portfolio new beta be after these transactions

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Suppose rRF = 6%; rM = 10%; and rA = 14% a. Calculate Stocks A's beta. b. If Stock A's beta were 2.0, then what would be A's new required rate of return?

XYZ Corporation's bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.

You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio's new beta be after these transactions? Show your work.

Reference no: EM132433971

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