Percentage of portfolio in asset portfolio expected return

Assignment Help Financial Management
Reference no: EM131075970

Asset W has an expected return of 13.4 percent and a beta of 1.33. If the risk-free rate is 4.58 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percentage and round to 2 decimal places (e.g., 32.16). Round your portfolio beta answers to 3 decimal places (e.g., 32.161).) Percentage of Portfolio In Asset Portfolio expected return? Portfolio Beta? 0% 25 % 50 % 75 % 100 % 125 % 150 %

Reference no: EM131075970

Questions Cloud

Write a memo to mr borrow with the results of your research : Mr. Borrow wants to knowthe definitions of Collateral, Continuing involvement, financial asset, and Derecognize. Write a memo to Mr. Borrow with the results of your research.
Market interest rate increases : An investor wants to find the duration of a 25-year, 8% semiannual pay, noncallable bond that's currently priced in the market at $901.19, to yield 9%. using a 50 basis point change in yield, Calculate new price of the bond if the market interest rat..
Gaussian random variable with mean zero and variance : where N is a Gaussian random variable with mean zero and variance a2. The parameter e is a random variable, independent of N, with probability mass function
Globalization of the early twenty-first : In Global Capitalism: Its Fall and Rise in the Twentieth Century, Frieden implicitly argues that the globalization of the early twenty-first century is not new in world history, reasoning that capitalism was previously "global" in the late ninetee..
Percentage of portfolio in asset portfolio expected return : Asset W has an expected return of 13.4 percent and a beta of 1.33. If the risk-free rate is 4.58 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required...
Create portfolio that has an expected return : You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.6 percent. Assume D has an expected return of 14.1 percent, F has an..
Determine how to improve communication : Utilize coaching, mentoring, and training to improve your own skill set and those of your employees. Explain how these initiatives may affect your current employment situations and help you improve future needs and expectations.
Revenue returns for investment project : The estimated revenue returns for Investment Project P are as follows: £1,300,000 in year 1 £2,000,000 in each of the years 2 to 7
What is the specific heat of silver : What is the specific heat of silver?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the effective annual yield you achieved

You purchase a 30-year 8% annual coupon bond with a face value of 1000, at a yield rate of 9%. The bond is a callable corporate bond, with a call price of 1,050, and can be called by the issuing corporation after five years. Immediately after the 9th..

  How much should he set aside today for the purchase

Stephen plans to purchase a car 5 years from now. The car will cost $55,339 at that time. Assume that Stephen can earn 5.16 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

  The savings are considered to be a benefit to the people

A project will have an initial cost of $1 million and an upgrade cost of $300,000 in year five. The annual operating costs are expected to be $100,000. The savings are valued at $200,000 in years one through four, and $50,000 each year thereafter thr..

  Describe the competitive nature of this industry

Assume that the demand for chalk is = 8 -0.1, where P is the market price and Q is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $2...

  Maximizing shareholder returns usually implies

Maximizing shareholder returns usually implies that the firm must also satisfy customers, employees, suppliers, creditors and other stakeholders. First, rank stakeholders as to expected risk and return and then rank stakeholders as to their importanc..

  What is the discount yield-bond equivalent yield

What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 94 3/8 percent of its face value and is 60 days from maturity?

  What was your dividend yield on this stock

One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25 percent. Your capital gain was $6 a share. What was your dividend yield on this stock?

  Understandable financial reporting in companies

What are the key factor which drive clear and understandable financial reporting in companies. You are required to write a research strategy paper with a maximum of 2,500 words (excluding references).

  Current assets-liabilities result of investment decision

Financial managers often view the balances their companies have in Current Assets and Current Liabilities the result of an investment decision. Discuss why these balances can be viewed as “investment” decisions.

  About mergers as well as to perform the merger analysis

Hager’s management is new to the merger game, so Zona has been asked to answer some basic questions about mergers as well as to perform the merger analysis. Among the more prominent are (1) tax considerations, (2) risk reduction, (3) control, (4) pur..

  The future earnings-dividends and common stock price

The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 5% per year. Carpetto's common stock currently sells for $27.75 per share; its last dividend was $2.40; and it will pay a $2.52 dividend at the ..

  Real dollars and the average inflation rate is expected

Frank wants to have $2,000,000 in his retirement account when he retires 30 years from now. If he expects a return of 8%, how much does he need to invest monthly?  Same as (1), but now Frank wants to have $2,000,000 in real dollars and the average 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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd