Calculate your portfolios new beta

Assignment Help Business Management

Reference no: EM131375731

Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12.

Now, suppose you have decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7,500 and to use these proceeds to buy another stock for your portfolio. Assume the new stock's beta is equal to 1.75. Calculate your portfolio's new beta.

Reference no: EM131375731

Questions Cloud

Projected profit and loss statements : The body of the resultant paper should be 5-8 pages APA format and Plagiarism free please. Applicable spreadsheets should be attached to support your decisions. The assignment should include at least 5 relevant peer-reviewed academic or profession..

Summarize each of the readings in below : Summarize each of the readings in below.You may expand the table to accommodate your information.Write in complete sentences using proper grammar and mechanics.When Does Privacy Mean Censorship?

Customer delivery chain and have the organization : In management, there is a need to drive more value into the customer delivery chain and have the organization become more agile. The major impediment to any agile implementation is that a company spends a considerable amount of effort and the proc..

Manufacturer of ready-to-eat cereal : Assume you are a marketing analyst working for a manufacturer of ready-to-eat cereal. You are given detailed sales data for the past year and asked to create a report showing the differences between the four sales regions (north, south, east, and wes..

Calculate your portfolios new beta : Now, suppose you have decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7,500 and to use these proceeds to buy another stock for your portfolio. Assume the new stock's beta is equal to 1.75. Calculate your portfolio..

Determining the measuring performance : There are two ratios which are used to measure airline performance. One measures efficiency while the other measures equipment utilization. Is this sufficient? In 200 - 250 words, describe two other metrics you think airlines should develop to ..

What is ri the required rate of return on stock i : Now assume rRF remains at 9 percent but rM (1) increases to 16 percent or (2) falls to 13 percent. The slope of the SML does not remain constant. How would these changes affect ri?

Prepare a paper about organizational change : Your Project Assignment (due Week Four) is to prepare a paper about Organizational Change. You can talk about the reasons for change, resistance to change, overcoming and dealing with change, and/or managing change. The choice is yours.

Distinguish between logical process models : Distinguish between logical process models and physical process models. Define what is meant by a process in a process model. How should the process be named? What information about a process should be stored in the CASE repository?

User Account

All Pages