Orderly market for limited number of securities

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1. You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.14 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?

2. Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow –$1,500 $550 $630 $620 $400 $200 Payback years.

3. Which one of the following players on the floor of the NYSE is obligated to maintain a two-sided, orderly market for a limited number of securities?

Reference no: EM132059420

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