The total invested in the market portfolio

Assignment Help Financial Management
Reference no: EM131063700

Which of the following comes closest to the beta of a portfolio that has 55% of the total invested in the risk free rate of interest and 45% of the total invested in the market portfolio?

a. 1.00

b. 0.45

c. 0.55

d. 0.50

e. Need more information to answer the question.

PLEASE SHOW WORK

Reference no: EM131063700

Questions Cloud

What is the conversion premium for this bond : You have been hired to value a new 30-year callable, convertible bond. The bond has a coupon rate of 5.4 percent, payable semiannually, and its face value is $1,000. The conversion price is $62, and the stock currently sells for $49. What is the mini..
Find the difference in sample means : Find the difference in sample means - Find the difference between the sample means of teacher A and teacher B
Insurance model or the medicaid model for its chip : 1) From the first e-Activity, specify whether your state follows the private insurance model or the Medicaid model for its CHIP. Analyze the impact that the choice of model has on the fiscal health of your state. Provide two (2) examples of this i..
Quantify the change in consumer surplus : What would have been the increase in consumer surplus? (quantify the change in consumer surplus using the same approach used in the slides to determine Lisa's increase in her consumer surplus.)
The total invested in the market portfolio : Which of the following comes closest to the beta of a portfolio that has 55% of the total invested in the risk free rate of interest and 45% of the total invested in the market portfolio?
Discuss alternative courses of action available to you : Assume the role of Oliver Flanagan in the case. Identify the actions you would have taken when Robert Trauger asked you to help him alter the 2000 Nextcard audit work papers. In answering this question, discuss alternative courses of action availa..
Identify trade policies of the time : Think about 2000-2010. Identify trade policies of the time and discuss the following points in 2-3 paragraphs: What are the main goods and services the United States traded internationally?
What is the current value of the stock if the risk-free rate : A one-year call option contract on Cheesy Poofs Co. stock sells for $1,310. In one year, the stock will be worth $63 or $84 per share. The exercise price on the call option is $76. What is the current value of the stock if the risk-free rate is 4 per..
Analyze the medication administration workflow diagram : Analyze the Medication Administration workflow diagram. Then compare the Medication Administration workflow and the potential workflow using BC-MAR described at http://www.stratishealth.org/expertise/healthit/hospitals/htoolkit.html under Section..

Reviews

Write a Review

Financial Management Questions & Answers

  What are the net cash flows of the project for the years

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life.

  What is the opportunity cost of capital

Eastern Electric currently pays a dividend of about $1.96 per share and sells for $33 a share. If investors believe the growth rate of dividends is 4% per year, what is the opportunity cost of capital? If investors' opportunity cost of capital is 10%..

  What is the value of zero-coupon bond with a par value

Please provide the steps to solving this problem using a financial calculator as well as reasonings for certain steps if needed: What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.20%? The bond has 12 years ..

  What is the relationship between the mpc and the mps

What is the relationship between the MPC and the MPS? If the MPC rises, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?

  Future value-make single investment

(Future Value) Sarah Wiggum would like to make a single investment and have $2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? What if Sarah w..

  Company accepts projects with payback periods

Project H requires an initial investment of $100.,000 and produces annual cash flows of $50,000, $40,000, and $30,000. The projects are mutually exclusive. The company accepts projects with payback periods of 3 years or less.

  Exchange rate under the theory of interest parity condition

Explain how an increase in the interest rate in Europe would affect the interest rate in the United States and the dollar-euro exchange rate under the theory of Interest Parity Condition. What factors does this theory leave out?

  Sum of the present values of expected cash flows

Which of the following would lower the sum of the present values of expected cash flows?

  Geometric average return-annual arithmetic average return

Three years ago your return was 4%. Two years ago your return was 14%. One year ago your return was -11%.. Which statement is correct? The geometric average return is 1.81% and the annual arithmetic average return is 2.3%

  Calculate the monthly principal and interest payment

Use a rate of 3.95% for a 30 year term. This is the APR. Assume you are making a down payment of 10%, so you will borrow 90% of the purchase price you selected (200,000). Calculate the monthly principal and interest (P&I) payment required if the loan..

  In a market-the equilibrium condition

In a market, the equilibrium condition is given by the following: Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers? Which of..

  What is the weighted average cost of capital

You are provided the following information: Debt $ 90000 Equity $ 90000 The shares trade at $ 10; the growth rate is 7%. Dividends last year were $ 1.00. What is the WACC if the CFO decides on changing the capital structure to 60% debt and 40% equity..

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