Find out the amount of money to be invested in stock

Assignment Help Finance Basics
Reference no: EM132569646

Question 1: You have been given a task by your US based client, to construct a Portfolio for an investor willing to invest $1 million but his portfolio would be as risky as the market. This portfolio will have three stocks and a risk free asset. Stock 1 will use $180,000 and its beta is 0.85, Stock 2 will utilize $290,000 of the total money invested and its beta is 1.40. Stock 3's beta is 1.45. Find out the amount of money to be invested in Stock 3 and risk free asset.

Reference no: EM132569646

Questions Cloud

What is trait linked to sex : What is a trait linked to sex? What is the difference in inheritance between boy and girl for traits linked to sex?
What the company collected cash from credit customers : What THE Company collected cash from its credit customers during 2023 in the amount of?THE Company uses the aging method to estimate its bad debt expense.
What is the general purpose of an auditors report : GeoPetro is independent oil and natural gas Company with headquarters in San Francisco, California. What is the general purpose of an auditors report
Which investment is the safest and its trend with respect : Which investment is the safest and its trend with respect to inflation. What is the risk-return tradeoff if she invests half of her money in this instrument?
Find out the amount of money to be invested in stock : You have been given a task by your US based client, to construct a Portfolio for an investor willing to invest $1 million but his portfolio would
Description of the health condition diabetes mellitus : Description of the health condition Diabetes Mellitus. Explain why the resources you chose are appropriate.
Discuss the statutory and common law positions : Discuss the statutory and common law positions of the directors in the case study above. Explain this question with AGLC reference style
Which the carrying amount of the asset exceeds : An impairment loss is the amount by which the carrying amount of the asset exceeds the sum of the expected future net cash flows.True/false
Calculate the payback period for alternative : The company's cost of capital (WACC) is 12%. The initial cost and future cash flows of the alternatives are presented below. Use Excel to solve this problem.

Reviews

Write a Review

Finance Basics Questions & Answers

  Importance in analyzing a company

Investors and creditors are typically not interested in the same thing. Investors are typically interested in whether a company is going to turn a profit over time, while a creditor is interested in short-term cash flow. Decide whether you are an ..

  What does samuel huntington predict will be cause

What does Samuel Huntington predict will be cause of the major conflicts in the coming years? What reasons does he give to support this?

  What is discount rate

TIran Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 4.9 percent Semiannual bonds outstanding, par value $1,000 each

  Determine the bond values given compounding frequencies

Given a 2-year, zero-coupon bond with a face value of $100 and trading at a simple annual rate of 10%, determine the bond values given following compounding frequencies

  Compare and contrast the fundamental differences between

question 1 compare and contrast the basic differences between the operation of a currency forward market and a futures

  Production or distribution methods

A company wants to increase the return to its shareholders without changing its production or distribution methods. What method(s) would they employ?

  What should the exchange rate be five years from now

Assuming that relative purchasing power parity exists, what should the exchange rate be five years from now?

  What would happen to the firm wacc

(a) What would happen to the firm's WACC? (b) What would happen to the required return on the company's stock?

  Create two equal annual dividend payments

What will your dividend income be this year if yuo use homemade dividends to create two equal annual dividend payments?

  Calculate the wacc be determined

How should the capital structure weights used to calculate the WACC be determined?

  What is financial intermediation

What is financial intermediation? Who performs it? and why is it important?

  Calculate the npv of the homenet project

Calculate the NPV of the HomeNet project assuming a cost of capital of 10 %, 12 %and 14 %. What is the IRR of the project in this case

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