What will the portfolios new beta

Assignment Help Finance Basics
Reference no: EM13258355

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.05. You are considering selling $100,000 worth of one stock with a beta of 1.15 and using the proceeds to purchase another stock with a beta of 1.35. What will the portfolio's new beta be after these transactions? Round your answer to two decimal places.

Reference no: EM13258355

Questions Cloud

What is the technology solution for a company : Begin thinking of a business problem that could be solved with a technology solution for a company or organization you are familiar with. Use the Q&A Forum to ask questions and discuss your ideas about the project.
What is the cost basis for each asset : A business is purchased for 250,000. The fair market value of assets are equipment 90,000, building 135,000, and goodwill 15,000. What is the cost basis for each asset?
What is the default risk premium on the corporate bond : A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.
What is the default risk premium on the corporate bond : A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.
What will the portfolios new beta : using the proceeds to purchase another stock with a beta of 1.35. What will the portfolio's new beta be after these transactions? Round your answer to two decimal places.
What is the cost basis for each asset : A business is purchased for 250,000. The fair market value of assets are equipment 90,000, building 135,000, and goodwill 15,000. What is the cost basis for each asset?
Determine the phase shift in each case at 50 and 75hz : a second instrument is required to measure the input signals up to 100Mz with an amplitude inaccuracy of less than 1% calculate the natural frequency requirements, if the damping retios are 0.3 and 0.6 respectively.
What is the value of a put option written on the stock : What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Round your answer to the nearest cent.
Equipment and operating assets : Please show your work. Thurco corp had revenues of $120,000 and expenses of $70,000 if thurco had $250,000 of equipment and other operating assets last year what is thurcos margin?

Reviews

Write a Review

Finance Basics Questions & Answers

  Question on project evaluation

ABC company purchased a machine 5 years ago at cost of $100000. The machine had an expected life of 10 years at the time of purchase, and an expected salvage value of $10,000 at the end of the 10 years. Show all workings to justify your answer

  What are the retained earnings in 2007

The company paid$7,842 as dividends. If the retained earnings is 2006 were $50,877, what are the retained earnings in 2007?

  Ratio of the risk premiums on two assets

Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.

  Computing present value and future value

Find out the future value one year from now of $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

  Calculate total rate of return on the bond

Consider a bond paying a coupon rate of 10 percent per year semiannually when the market interest rate is only 4 percent per half year. The bond has three year until maturity.

  Libraries of future

Given emerging information technology, there's controversy regarding the continuing viability of this marketing concept. One view of how the concept might continue to evolve is from renowned futurist, Thomas Frey. Using the following websites:

  Conduct break-even analysis

R Squared is a mobile diagnostic imaging company that performs MRI scans of patients at hospitals and clinics that cannot afford their own scanners.

  Investment timing

Suppose you can purchase an optical scanner today for $400. The scanner provides benefits worth $60 a year. The expected life of the scanner is tenm years. Scanners are expected to decrease in price by 20% per year.

  Present value of three year cash-flow stream

Find out the present value of following three year cash-flow stream if your interest rate is 6%.... Year 1 $200, Year 2 $400 Year 3 $300 ?

  Compute the company cm ratio and break even point

Memofax, Corporation produces memory enhancment kits for fax equipments. Sales have been very erratic with some months showing a profit and some months showing a loss.

  How does a payable-through draft compare with a check?

1. How does a payable-through draft compare with a check?  2. What are some of the various types of debt financing?

  Calculating present values of cash flows

You can purchase property today for $3.3 million and sell it in 5 years for $4.3 million. (You earn no rental income on the property.)

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