Invest in portfolio containing stock-beta of portfolio

Assignment Help Financial Management
Reference no: EM13914765

You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17 percent. Stock X has an expected return of 14.8 percent and a beta of 1.35, and Stock Y has an expected return of 11.2 percent and a beta of 0.90. (a) How much money will you invest in stock Y? (b) What is the beta of your portfolio?

Reference no: EM13914765

Questions Cloud

Concept of a feasibility study : Evaluating Feasibility The concept of a feasibility study is central to viability, the "worth to the effort" ratio, and return on investment (ROI). What needs to be taken into consideration to create a feasibility study (e.g., human resources, com..
Discussion on channels of communication-email : Channels of Communication, Email
Should controls on mercury be tightened or relaxed : Reconsider the study done by Carson and Mitchell (1993). Cite any two reasons why their benefit estimate might be inflated. Be specific.
What is the value of the stock ex rights : Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take Two rights to buy a new share in the offering at a subscription price of $57. At the close of business the day before the ex-rights day, the com..
Invest in portfolio containing stock-beta of portfolio : You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17 percent. Stock X has an expected return of 14.8 percent and a beta of 1.35, and Stock Y has an expected re..
Estimate the benefits of water pollution abatement : Discuss the major difficulties associated with estimating the benefits of water pollution abatement. Propose a policy approach that would promote states' use of benefit-cost analysis in setting and evaluating standards.
What is the balance in the retained earnings account : Prepare the journal entries necessary to close the temporary accounts at December 31, 2013, the Get Fit Health Club. What is the balance in the Retained Earnings account after the closing entries are posted?
Mutual fund manager needs to select a specific company : A mutual fund manager needs to select a specific company to invest in such as, Motorola Mobility, Apple, Ford, Band of America, and Merck. After the mutual fund manager reviews each of these companies background and finances he or she decides to t..
Differences of the railway labor : Discuss the similarities and differences of the Railway Labor Act and the Labor Management Relations Act.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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