User Account

All Pages

The beta of your portfolio after you purchase the new stock

Assignment Help Financial Management
Reference no: EM132017379

You are an investor in common stock, and you currently hold a well-diversified portfolio that has an expected return of 8 percent, a beta of 1.2, and a total value of $12,000. You plan to increase your portfolio by buying 1,000 shares of Bann at $15 a share. Bann has an expected return of 15 percent with a beta of 1.0. What will be the expected return and the beta of your portfolio after you purchase the new stock?

Reference no: EM132017379

Questions Cloud

Create a challenge for the fire service in general : A nation-wide trend that has created/may create a problem related to fire suppression within your department.
Review the two models for measuring interest rate risk : To this end your manager asks you to review the two models for measuring Interest Rate Risk,
Discuss six-step to problem solving process : When faced with a problem, what do you do to solve it? This assignment asks you to apply a six-step to problem solving process to a specific problem scenario.
What are the incremental cash flows from project : What are the incremental cash flows from this project? In other words determine the free cash flow of the project over its life
The beta of your portfolio after you purchase the new stock : Bann has an expected return of 15 percent with a beta of 1.0. What will be the expected return and the beta of your portfolio after you purchase the new stock?
Do you think they can be truly effective in caring for dying : Do you think they can be truly effective in caring for the dying? Can they fully attend to pain relief as well as psychological, social, and spiritual needs?
What efforts can be made to assure inclusion of all groups : Discuss the problems associated with the underrepresentation of various cultural groups in research studies. What does this fact do to the value of the data.
What was the basic goal of article : What was the basic goal of this article? The purpose of this article is to obtain accurate data analysis and learn how to add credibility to your research claim
What are the health beliefs of the culture : Research a culture in the State of Georgia, US briefly provide statistics, what are the health beliefs of this culture and how do you recommend medical.

Reviews

Write a Review

Financial Management Questions & Answers

  One of the ways a margin account can be used

Which of the following is not one of the ways a margin account can be used?

  Revenue is recognized on the march income statement

How much revenue is recognized on the March income statement from this order?

  Delinquent on his accounts payable balance

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to repayment schedule of $949 per month.

  The annual cash flow is projected

We are examining a new project. We expect to sell 7,600 units per year st $68 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $68 X 7,600 = $516,800. The relevant discount rate is 14 percent, and th..

  Recommend the best strategy for art

Use the automobile lease versus purchase analysis to find the total cost of both the lease and the purchase and then recommend the best strategy for Art.

  Short-term securities prices and interest rates

Suppose the U.S. Treasury issued $50 billion of short-term securities and sold them to the public. Other things held constant, what would be the most likely effect on short-term securities' prices and interest rates?

  Difference between commercial banks and investment banks

Explain the difference between commercial banks and investment banks. Discuss their roles in our financial system, how each facilitates capital raising by firms, and how each earns profits. Discuss the potential conflict of interest when these two en..

  The inflation rate in sweden

If the inflation rate in the United States is greater than the inflation rate in Sweden, other things held constant, the Swedish currency will:

  Risk of the instrument with the higher interest rate

Do US Treasury bills have lower interest rates than large-denomination negotiable bank CD? Why or why not, is the difference appropriate, and do you think that it correctly reflect the risk of the instrument with the "higher" interest rate.

  What are the order costs

Louise Manufacturing uses 2,700 switch assemblies per week and then reorders another 2,700. The relevant carrying cost per switch assembly is $11.00, and the fixed order cost is $1,350. What are the current carrying costs? (Do not round intermediate ..

  How much must be deposited every three months

If the account pays 5.2% APR compounded monthly, how much must be deposited every three months?

  What is the required return on the companys stock

Tell Me Why Co. is expected to maintain a constant 4.8 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.6 percent, what is the required return on the company’s stock?

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