User Account

All Pages

Portfolio''s new beta be after these transactions

Assignment Help Finance Basics
Reference no: EM131189939

You have a $1 million portfolio consisting of a $200,000 investment in each of 5 different stocks. The portfolio has a beta of 2.0. You are considering selling $200,000 worth of one stock with a beta of 1.5 and using the proceeds to purchase another stock with a beta of -2. What will the portfolio's new beta be after these transactions?

Reference no: EM131189939

Questions Cloud

Interactive session-management : What kinds of mobile applications are described in this case study: Interactive Session: Management, Meet the New Mobile Workers? And what business functions do they support?
The squad room is a cartoon caricature : An African American officer complains to his shift supervisor that posted on one of the main bulletin boards in the squad room is a cartoon caricature with his name under it.- a couple of supervisors have seen this cartoon. What should happen?
Statements on standards for tax services found : Refer to the AICPA Code of Professional Conduct and the Statements on Standards for Tax Services Found at: http://www.aicpa.org/Research/Standards/Tax/Pages/default.aspx
Beginning the investment beginning : Stephanie Watson plans to make the following investment beginning next year. She will invest $2,090 in each of the next three years, and will then make investments of $3,650, $3,725, $3,875, and $4,000 over the following four years. If the investment..
Portfolio''s new beta be after these transactions : You have a $1 million portfolio consisting of a $200,000 investment in each of 5 different stocks. The portfolio has a beta of 2.0. You are considering selling $200,000 worth of one stock with a beta of 1.5 and using the proceeds to purchase anoth..
Collision and other than collision coverages : What is the difference between Collision and Other than Collision coverages? Why does the PAP list certain perils in Other than Collision when they can be caused by collision? What happens if the cause of loss is not listed?
Calculate the project net present value : Assumes that the project requires an initial $7,000 working capital investment. The company's marginal tax rate is 30%. Calculate the project net present value a 12% discount rate.
Demonstrate how and why the strategy is important : Discuss one (1) Health Promotion Strategy proposed by your State. In this presentation demonstrate how and why the strategy is important
Determine risk level of the stock from your investors point : Based on your financial review, determine the risk level of the stock from your investor's point of view. Indicate key strategies that you may use in order to minimize these perceived risks.

Reviews

Write a Review

Finance Basics Questions & Answers

  Common stock outstanding

Dryden, Corp. has 500,000 shares of common stock outstanding, a P/Eratio of 11, and $900,000 earnings available for commonstockholders. The board of directors has just voted a 5:2 stock split.

  What are her monthly payments to the account

Sarafina is making monthly payments into an annuity. She wants to have $900 in the fund to buy a new convection range in three months, and the account pays 4.8% annual interest. What are her monthly payments to the account?

  What is the firm intrinsic value today

Hart Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 14%.

  Select the best option

Assume it was announced this morning that the winner of Powerball lottery will receive a Grand Prize of $73.7 million.

  A firm has after-tax cash flow from operations equal to

a firm has after-tax cash flow from operations equal to 100000. operating working capital increased by 20000 and the

  Calculate the eoq

It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days%u2019 usage in inventory as a safety stock.

  What is the weighted marginal cost of capital

What is the weighted marginal cost of capital (WMCC)? What does the WMCC schedule represent? Why does this schedule increase?

  Develop the forecasted income statement use a historical

for this assignment use the study company approved by your facilitator in module 1 when addressing the following

  Npv formula to get the npv of the loan

You have your initial investment and the all the cashflows thereafter, he receives 375 dollars at the 4 month and 13 month. Use the NPV formula to get the NPV of the loan.

  Bummel and strand corp has a gross profit margin of 337

bummel and strand corp. has a gross profit margin of 33.7 percent sales of 47112365 and inventory of 14595435. what is

  What is the inventory turnover rate

The Tourist Stop takes an average of 63 days to sell its inventory and an average of 1.5 days to collect payment on its sales. What is the inventory turnover rate?

  Current value of these collection payments

If a hospital were to receive $4,000 per year in payments at the end of each year for the next 12 years from an uninsured patient who underwent an expensive operation. What would be the current value of these collection payments: at a 14% rate of r..

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