Appropriate for an investor

Assignment Help Finance Basics
Reference no: EM132764590

Stock A has a beta : 1.4 and alpha : 1.7Stock B has a beta : 1.85 and alpha : -6.0 Identify and justify which stock would be more appropriate for an investor who wants to add this stock to a well-diversified equity portfolio? Which stock would be more appropriate for a single-stock portfolio? Explain your answers.

Reference no: EM132764590

Questions Cloud

What are the risks mark faces in entering : Importer receives an order for Euro 25 million worth of machinery from one of his clients in Singapore. The specific equipment is manufactured
Conduct international business : What are the currencies that the multinational corporation uses to conduct its international business?
Apportion this fund among the different currencies : Mark Tan is keen to consider opening a new division in his firm to deal with FX Trading. He wants to understand more about currency trading. What
How the trends in the main foreign currencies : Explain how the trends in the main foreign currencies used by the multinational corporation have changed over
Appropriate for an investor : Which stock would be more appropriate for a single-stock portfolio? Explain your answers.
Determine Swindler basis in each distributed asset : Swindler's basis in his partnership interest before the distribution is $69,000. Determine Swindler basis in each distributed asset
What will be the final payoff : which also expires today, what will be the final payoff? What is this combination called?
What is the sensitivity to the portfolio : A portfolio manager wants to make simple portfolio from only two stocks, Y and Z. The returns for stocks Y and Z are given by the following equations
What is the sensitivity to the portfolio : What is the sensitivity to the portfolio of a 1% rise in inflation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Sonique existing weighted average cost of capital

Sonique Ltd's capital structure is as follows: Debt 35% Preference Shares

  Under what conditions is sampling bias likely to occur

Under what conditions is sampling bias likely to occur, what are its effects on generalization, and how can it be avoided?

  Compute of cost of capital

Compute of cost of capital and Calculate the cost of capital for the funds needed to meet the expansion goal and The firm expects to generate enough internal equity to meet the equity portion of its expansion needs.

  What is the npv of the investment

If you insulate your office for $16,000, you will save $1,600 a year in heating expenses. These savings will last forever.

  Explanation of the articles content

Write a review of an article that discusses entrepreneurial finance involve a thorough explanation of the articles content, relevancy to the course and your opinion as to the opinion or information expressed in the article.

  Determine the two most critical financial ratios for you

Determine the two most critical financial ratios for you to monitor at your facility, and indicate how each of these ratios would help you assess the current performance of your facility. Provide support for your rationale.

  Repaid in fixed annual installments

On the same loan, is the total amount of interest payable more if the loan is repaid in fixed annual installments, by constant amortization or on maturity?

  Benefits of entrepreneurs conducting market research

What are benefits of entrepreneurs conducting market research? Provide examples of market research strategies used in your current business or one with which you are familiar.

  What are you assuming about the future

What are you assuming about the future? What are you trying to figure out? What are the critical factors that led you to choose the option you chose?

  How much would the roe change in response

Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure?

  Establish standards of ethical behavior no different

Compose and explain business policies that establish standards of ethical behavior no different from the ethical standards and norms of the larger society

  Direct financing-financing intermediation

Identify and describe the key benefits of both and provide a recommendation as to which you think is better.

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