User Account

All Pages

How do calculate the portfolio beta

Assignment Help Financial Accounting
Reference no: EM132631478

Corporation holds a diversified portfolio consisting of $6000 investment in each of 20 different common stocks. In which 15 stocks has a beta equal to 1.50 and the remaining 5 are in line with the market (i.e. average risky stocks).

Problem (i) Calculate the Portfolio's Beta

Now suppose above mentioned corporation has decided to sell one of the stocks in its portfolio with a beta equal to 1.0 for $6000 and used these proceeds to buy another stock for its portfolio. Assume that new stocks beta is equal to 1.75. Calculate your portfolio's new beta.

Reference no: EM132631478

Questions Cloud

Calculate the coordinates of the radiated points : Calculate the angular misclose and the adjusted bearings of all the traverse lines and radiations and calculate the coordinates of the radiated points
Extract the data and transform the data : Extract the data and transform the data into the XML format - deviation from the XML structure - The "id"s must be unique, so if there are multiple instances
Calculate annual depreciation charge for each of six year : Calculate the annual depreciation charge for each of the six years of the truck's life using the declining-balance method and sum-of-digits method
Describe the talking styles in brief : Read "Shared talking styles herald new and lasting romance". Then, visit the Language Style Matching website and, using sample written communication between.
How do calculate the portfolio beta : Calculate the Portfolio's Beta. Corporation holds a diversified portfolio consisting of $6000 investment in each of 20 different common stocks.
Define self-concept and self-image in brief : Define self-concept, self-image, and self-esteem. Write at least two sentences on each term. Provide an example of how your "self-concept," "self-image,".
What type of budget incorporate the most current information : What type of budget incorporates the most current information? static budgets (this is wrong). / rolling budgets. / flexible budgets
Research and analytical ability through the application : Research and analytical ability through the application of their economics knowledge learned in the course unit to compose a company report.
Where can go in the banking center to review : Where can you go in the Banking Center to review downloaded bank feed transactions that have already been matched to existing transactions in QuickBooks Online?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss the steps that the bank should take to ensure

Discuss the steps that the bank should take to ensure that it does not grant assistance to undeserved Tatasmania Company Ltd.

  What the bad debt expense reported by the company was

What The bad debt expense reported by THE Company for 2023 was equal to?At January 1, 2023, THE Company had accounts receivable of $240,000

  Compute the average holding cost of the forex position

Compute the average holding cost of the Forex position. Compute the amount that would gain or loss if the prevailing spot GBP/MYR becomes 5.35 45/55.

  What will the P by E ratio be

If the firm sells at two times book value per share, what will the P/E ratio be? (Do not round intermediate calculations. Round the final answer to 2 decimal)

  What year does the pool reach the payback period

In what year does the pool reach its payback period? The City in which you live is evaluating a project to build and manage a public pool

  Prepare a business valuation using the market value method

Prepare a business valuation for 2013 using the market value technique, the book value method, and the multiples-based techniques.

  How will total dividend be divided between common stock

The company declares a total dividend of $ 200,000. If the dividends on preferred stock are one year in arrears ( in addition to the current year), how will total dividend be divided between the common and preferred stock?

  How many units are budgeted for sale in october

Foyert Corp requires a minimum $30,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $3..

  Compute amount of cost of goods sold and ending inventory

Compute the amount of cost of goods sold, ending inventory assuming the following cost flow assumptions: A) FIFO B) LIFO C) Weighted Average

  Explain the capital structure of the organization

Explain the capital structure of your organization. Do they rely more heavily on debt or equity? What are their structure weights (%'s)?

  Compute working capital and current ratio at year beginning

Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, e.g. 15.25.)

  Tax bracket for ordinary income

Molly became an employee of ABC, Inc., a privately held firm. On December 15, 20X3, Molly was allowed to buy 20,000 shares of ABC, Inc. stock for $40,000 dollars. Advise Molly roughly how much tax she must pay and for what year(s). Assume Molly is in..

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