User Account

All Pages

Find the portfolio beta

Assignment Help Finance Basics
Reference no: EM1355562

My portfolio is invested equally in five stocks (that is, each stock in the portfolio has a weight of 0.20) and has a required return of 9.4%. The risk-free rate is 5% and the market risk premium is 4%. What is the portfolio beta? Assume the my portfolio is on the SML.

Choose 1 of the following:
A. 0.950
B. 1.400
C. 0.800
D. 1.100
E. 1.550

The last stock was added to this portfolio is Lauren Clothing Co, which has a beta of 1.50. What was the portfolio's beta before Lauren's stock was added? (Hint: Remember that is was a four stock portfolio before the last stock was added.)

Choose 1 of the following:
A. 1.150
B. 1.000
C. 1.250
D. 1.175
E. 1.025

 

Reference no: EM1355562

Questions Cloud

Current global environment and effect on business : what are your thoughts about the global environment and what effect do you believe it has on the current and future US economy and business?
Basic elements of clinical assessment : Discuss the basic elements of clinical assessment. What is the role of the DSM IV-TR in clinical assessment? How does it guide the diagnosis of abnormal behavior?
Explain how did racism affect foreign affairs and discuss : Explain how did racism affect foreign affairs and discuss how the United States viewed some groups and the influence of the military abroad.
Effect on u.s. economy and business : Current Global Business Situation & Effect on U.S. Economy and Business - what effect do you believe it has on the current and future US economy and business?
Find the portfolio beta : My portfolio is invested equally in five stocks and has a required return of 9.4 percent. The risk-free rate is 5% and the market risk premium is 4 percent.
Gaap and health care : Some generally accepted accounting principles (GAAP) apply only to health care, and there are many health care organizations that use other comprehensive bases of accounting when GAAP does not apply
Describe how you would use excel to analyze this data : Describe how you would use Excel to analyze this data and organize it to prepare a written report
Behavior assessment system for children : For most purposes, the Behavior Assessment System for Children (BASC) is an excellent choice for screening externalizing behavior problems.
Global economic situation and effect on the u.s. : The global economic situation, if not controlled at present, will continue in the future and diminish the capability

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing interest rates by using irp concept

Suppose that Interest Rate Parity holds. The spot rate for Euro is $1.20 and the one year forward rate is $1.23. Find out the annual rate of interest on deposits in United States?

  Ipo initial public offering

Explain how the Initial Public Offering (IPO) process works and its positive and negative aspects. Who benefits? How effective is the transfer of capital from savers to users (how much lost in the process)?

  Present value of a lump sum payment

Calculate the present value of a lump sum payment

  Detemining value of preferred share

Preferred shares issued by the CAT carry dividend of 1.25 per share. How do I compute the value of preferred share if the required return on the shares is 14.0%?

  Foreign transaction-foreign currency transaction

Differentiate between a foreign transaction and a foreign currency transaction. Please give an example of each.

  Global exchange rates and forward contracts

Given the global financial crisis of 2007-2009, do you anticipate any changes to systems of fixed exchange rates and forward contracts in near future?

  Determine additional funds needed

Suppose that Marbell Corporation is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8 percent return on sales and 70 percent is paid out as dividends.

  Determine expected future stream of dividends

In 1965, Warren Buffett get control of a New England textile business called Berkshire Hathaway for about $10 per share. Today the stock sells for around $135,000 a share and Mr. Buffett is the 2nd richest person in America.

  Time value of money-analysis

Beverly started a paper route on January 1, 1995. Every three months, she deposits $300 in her bank account, which earns 8 percent annually but is compounded quarterly.

  Create a decision tree for decision analysis

Create a decision tree for decision situation explained in problem 25 and indicate the best decision

  Forecasting conclusions that support tfc’s decision

From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions.

  Explain in general terms the accounting treatment

Explain in general terms the accounting treatment to changes in terms of existing loans,  What should be the accounting treatment of the modification to Blueberry’s note?

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