User Account

All Pages

Explain the beta and expected return of a portfolio

Assignment Help Finance Basics
Reference no: EM133109695

Stock A's beta is 0.92. Stock B's expected return is 8.8%. The risk free rate is 4% and the market risk premium is 6%. What are the beta and expected return of a portfolio that invests 25% of its money in stock A and 75% of its money in Stock B?

Reference no: EM133109695

Questions Cloud

How much additional debt will green paper need to borrow : How much additional debt will Green Paper need to borrow initially because of the expansion project, if it is financed in the same manner as the rest of Green P
How much is the margin of safety for the company for june : Total fixed expenses, $42000; Actual sales for the month of June, 5000 units. How much is the margin of safety for the company for June
What is the yield to maturity : Bond A is a zero-coupon bond with 10% yield to maturity. Bond B pays $50 coupons annually and its yield to maturity is 12%. Assume $1,000 par.
Calculate the direct materials price and quantity variances : The actual amount of direct materials (biscuit mix) purchased and used last month was 2,000 pounds. Calculate the direct materials price and quantity variances
Explain the beta and expected return of a portfolio : What are the beta and expected return of a portfolio that invests 25% of its money in stock A and 75% of its money in Stock B?
What is martell ror-expected rate of return : Martell Inc.'s stock has a 50% chance of producing a 30% return, a 35% chance of producing a 9% return, and a 15% chance of producing a -25% return.
Risk free rate implied by no-arbitrage : What is the one-year risk free rate implied by no-arbitrage (hint draw a binomial tree as we did in class)?
How many of each type of desk should the company make : The company must make at least 3 deluxe desks. How many of each type of desk should the company make to maximize profit for the next week
Selling new common stock : Tractor Supply Company hired you to help them estimate their cost of capital. You were provided with the following data. D1 = $1.25; P0 = $40.00; g = 6.00%; and

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