Thinking about your portfolio

Assignment Help Financial Management

Reference no: EM131319496

You hear on the news that the? S&P 500 was down 1.7% today relative to the? risk-free rate? (the market's excess return was negative 1.7 %). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble.

a. If? Zynga's beta is 1.4?, what is your best guess as to? Zynga's excess return? today?

b. If Proctor and? Gamble's beta is 0.6?, what is your best guess as to? P&G's excess return? today?

Reference no: EM131319496

Questions Cloud

What are the net cash flows of the project for years : H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,460,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to gen..

Assume the tax rate and required return on the project : H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,260,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wor..

What was the return of stock market that day : Assume on a given day in March, the Dow Jones Industrial Average reached a new low at a close of 6,947.25, which was down 88.09 that day. What was the return (in percent) of the stock market that day.

Company capital structure weights on market value basis : Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. What are the company's capital structure weights on a book val..

Thinking about your portfolio : You hear on the news that the? S&P 500 was down 1.7% today relative to the? risk-free rate? (the market's excess return was negative 1.7 %). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. If? Zynga's beta ..

Confidence intervals for the four different investments : Calculate the? 95% confidence intervals for the four different investments included in the following table. Small Stocks ?S&P 500 Corporate Bonds ?T-Bills. The? 95% confidence interval of small stocks is between ____% and ____%. ?

Most serious problem with the arbitrage pricing theory : Among the following statements, what is the most serious problem with the arbitrage pricing theory, and why?

What was effective ear over the holding period : You buy a bond with a $1,000 par value today for a price of $920. The bond has 6 years to maturity and makes annual coupon payments of $84 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective E..

Manufacturing has target debt–equity ratio : Miller Manufacturing has a target debt–equity ratio of .50. Its cost of equity is 13 percent, and its cost of debt is 7 percent. If the tax rate is 40 percent, what is the company’s WACC?

User Account

All Pages