User Account

All Pages

Calculate the beta of your three-stock portfolio

Assignment Help Managerial Accounting
Reference no: EM132951826

Question - Looking at a list of beta coefficients you spot a number of stocks as possible buys for your new stock portfolio. You have $80,000 to invest. You have decided to have just three stocks in your portfolio (this will make it easier to follow than a portfolio of more stocks). You have selected two already: The Gap with a beta of 1.31 and Disney with a beta of 1.25. You have invested $20,000 in each. For the final selection you are looking at Ford with a beta of 2.72, ebay with a beta of 1.75, IBM with a beta of 0.68 and the parent of Anheuser-Busch with a beta of 1.00. You would like the overall beta of your portfolio to be as close to "the market" or "average stock" as possible.

Make your third selection and calculate the beta of your three-stock portfolio (and yes, I need to see the formula!)

Reference no: EM132951826

Questions Cloud

Compute the markup percentage and target selling price : Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 18% on this new component
How much warranty expense must waymire report : How much warranty expense must Waymire report in its income statement and what amount of warranty liability must it report on its balance sheet for this year
What is the net present value of the investment : The machine is expected to have $35,000 at the end of the four-year period. What is the net present value of the investment
What is the target price : Based on potential sales of 500 units per year, a new product has estimated traceable costs of $990k. What is the target price to obtain a 15% profit margin
Calculate the beta of your three-stock portfolio : You would like the overall beta of your portfolio to be as close to "the market" or "average stock" as possible. Calculate beta of your three-stock portfolio
Explain the history of the indicator : Explain the history of the indicator (GDP) and the rationale for its creation. Describe the source of the data for the indicator (GDP) and how it is compiled
Prepare all the necessary journal entries : On 30 June 2020, the Equipment was sold for cash $90,000. Prepare all the necessary journal entries related to the Equipment
Examine the industry in which the entity operates : Examine the industry in which the entity operates. Use any or all of the following resources to conduct research on the company
Calculate after-tax cash flow at disposal : Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $13,644. Calculate After-Tax Cash Flow at disposal

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What do you mean by the management accounting

What do you mean by the Management Accounting and main advantages of standardisation in financial reporting - After all the transactions are recorded properly

  Which option should taken from purely financial perspective

Undertake an analysis of the above costs and advise Manny on which option should be taken from a purely financial perspective ?

  Determine the impact on fixed costs of the reduction

Determine the impact on fixed costs of the reduction in production and how the Green Partxs management might reduce the fixed costs

  Managerial accounting-activity rate

Laguna Corporation has provided the following data concerning its overhead costs for the coming year:The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining cost..

  What is the benefit-cost ratio for the project

If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the NPV. What is the benefit-cost ratio for the project

  Create the direct materials budget by quarter

Create the direct materials budget by quarter and in total for the year 2021.Each block requires 3.0 pounds of raw material, blockrock, and each pound of block

  How much duty is paid annually by Kamber

The plant imports volatile chemicals that are used in the manufacture of chemical reagents for laboratories. How much duty is paid annually by Kamber

  Which one of the capital budgeting method

The time value of money is explicitly considered in which one of the following capital budgeting method(s)? Net present value (NPV) method.

  Explain goal congruence and potential for ethical dilemma

From observations, inspection of various documents, Explain goal congruence and the potential for ethical dilemmas to arise for purchasing management.

  Find and calculate trailer return on investment

Find and calculate Trailer's return on investment (ROI) and residual income. Explain what each calculation of ROI and RI means for Trek.

  What effect accepting order have on net operating income

What effect would accepting this order have on the company's net operating income if a special price of $171.00 is offered per bracelet for this order

  What are the factors that will affect the company decision

What are the factors that will affect the company's decision to discontinue HKG-LAX route, including quantitative and qualitative factors?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd