User Account

All Pages

Calculate the market risk of the current portfolio

Assignment Help Finance Basics
Reference no: EM132535341

The same investor would like you to explain how volatile GAZ is, and how they might use this knowledge to alter their existing stock portfolio. They have shown you the following data on their existing stock portfolio:

Stock

$ Value

Beta

Stock A

$8,000

1.10

Stock B

$53,000

0.80

Stock C
$19,000
1.50

Calculate the market risk (Beta) of the current portfolio and explain what the figure you calculated means.

If the investor bought $20,000 shares in GAZ and GAZ had a beta of 0.9, recalculate the new portfolio beta and explain how this will impact on the market risk of the portfolio?

Reference no: EM132535341

Questions Cloud

What is the total amount reported for intangible assets : Joni Splish Brothers Inc. has the following amounts reported in its general ledger at the end of the current year. What is the Total amount reported
How many irrs does this project have : Your firm is considering a project that will cost $4.55 million upfront, generate cash flows of $3.5 million per year for three years, and then have a clean
Homeland security-what threat do cyber-attacks : Cybersecurity is considered as a new sector of homeland security. What threat do cyber-attacks pose to the United States?
What age should children be encouraged to read huck finn : Create a thread in which you give your opinions on these questions. There are no right or wrong answers here, but you need to address both parts
Calculate the market risk of the current portfolio : The same investor would like you to explain how volatile GAZ is, and how they might use this knowledge to alter their existing stock portfolio.
How would evaluate the risk involved in either scenario : Based on the calculation in both scenarios, what is the best value decision for either scenario? What would you do in either scenario? Explain.
Political culture and political ideologies : In the previous pages of this module, we looked at the political culture and political ideologies.
Why strayer university should establish a delta sigma theta : As a Strayer alumni how will you represent the Strayer University, Delta Sigma Theta Chapter in the community, if one were established?
Calculate depreciation expense for the first two years : Calculate depreciation expense for the first two years using the straight-line, units-of-service, and double-declining balance methods

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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