The beta be for the other stock in your portfolio

Assignment Help Financial Management
Reference no: EM132040588

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.21 and the total portfolio is equally as risky as the market.

What must the beta be for the other stock in your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Beta

Reference no: EM132040588

Questions Cloud

Does one dimension between structure and culture : Does one dimension between structure and culture in (Hill and Lynn book) precede the other? Provide at least one example to support your conclusion.
How do companies go about re-inventing their business models : How do companies go about re-inventing their business models? Why is this necessary?
Which security has more systematic risk : Which security has more total risk? Explain why. Which security has more systematic risk? Explain why.
Is it crucial to establish one of these two dimensions : Is it crucial to establish one of these two dimensions (structure and culture) before the other?
The beta be for the other stock in your portfolio : What must the beta be for the other stock in your portfolio?
Mental health care with employer-provided insurance : People with mental health conditions often fear workplace reprisals if they seek mental health care with employer-provided insurance.
What is the expected return on your portfolio : Your portfolio contains two stocks, A and B. You own 187 shares of Stock A; What is the expected return on your portfolio?
What can nurse practitioners do for patients : Given the insurance barriers and many other barriers to long-term mental health care, what can nurse practitioners do for patients and their families once they
Company of this transaction on the purchase date : Assuming an annual effective interest rate of 6.5%, what was the equivalent cost to the company of this transaction on the purchase date?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the market value added for this division

What is the Market Value Added (MVA) for this division if the constant growth FCF model applies and the division expects a constant growth in sales and FCFs of 6%?

  What is the value of the stock

Timeless Corporation issued preferred stock with a par value of $600. what is the value of the stock?

  Find the sustainable and internal growth rates for firm

Find the sustainable and internal growth rates for a firm. asset turnover = 1.50; profit margin = 6%.

  Coupon bonds on the market-what is current bond price

Aloha Inc. has 7 percent coupon bonds on the market that have 14 years left to maturity. If the YTM on these bonds is 8.3 percent, what is the current bond price?

  Calculate the tax on the sale of each asset

Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The fir..

  What will be the after-tax cash flow of this sale

Suppose you sell a fixed asset for $128,000 when it's book value is $161,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

  What is intrinsic value of deployment specialists stock

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 25% for two years and then at 6% thereafter. If the required return for Deployment Specialists is 11.5%, what is the intrinsic value of Deployment Specialists st..

  What is the dollar spread for this bill

A Treasury bill has a bid yield of 3.62% and an ask yield of 3.56%. The bill matures in 206 days. Assume a face value of $1,000. What is the dollar spread for this bill? You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R,..

  Evaluating two sites for construction of multipurpose sports

The city engineer and economic development directors are evaluating two sites for construction of a multipurpose sports arena.

  What is practical limit based on liquidity

What is the legal limit on current dividends? What is the practical limit based on liquidity?

  Effective cost of trade credit

The D.J. Masson Corporation needs to raise $400,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 2/10, net 90, and it currently pays on the 10th day and takes discounts.

  Does this create a disbursement float or a collection float

You have $14,600 on deposit with no outstanding checks or uncleared deposits. Assume you deposit a check for $6,200. Does this create a disbursement float or a collection float? What is your available balance? What is your book balance?

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