Total portfolio is equally as risky as the market

Assignment Help Financial Management

Reference no: EM13947418

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.24 and the total portfolio is equally as risky as the market.

Required:

What must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13947418

Questions Cloud

Example of which kind of historical information : The data on closing stock prices at the end of the year for all firms listed in S&P 500 is an example of which kind of historical information? The data on daily stock prices of all firms listed in S&P 500 for the last one year is an example of which ..

Determine a value which, with 90 percent confidence : The daily dissolved oxygen concentration for a water stream has been recorded over 30 days. If the sample average of the 30 values is 2.5 mg/liter and the sample standard deviation is 2.12 mg/liter, determine a value which, with 90 percent confide..

Find cost of equity using beta information in exhibit : ITE Valuation – Excel Valuations Introduction Recall William's assumptions: “With the right financing and the right acquisitions, under ideal circumstances, ITE could achieve $6 million in sales in five years, and $14 million in 10 years, with a targ..

Develop an expression for temperature distribution : Develop an expression for the temperature distribu- tion T(r) in the sphere wall in terms of q2", Ts,1, r1,r2, and the thermal conductivity of the wall material k.

Total portfolio is equally as risky as the market : You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.24 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?

Requires research, analysis, and drawing conclusions : This course requires research, analysis, and drawing conclusions on a firm operating in the international business environment. This paper will provide you an opportunity to explore the many strengths and weaknesses a firm encounters in the intern..

Differentiate between validation data and test set data : The average number technique is sometimes used to explain the results of an unsupervised neural network clustering.

What do you think of the articles : Please answer the following questions: What do you think of the articles? Be specific. Do you think it's possible to gender neutralize a child? Why or why not

Credible tools used in tax research and planning : Select two of what you believe to be the most credible tools used in tax research and planning. Assess each in terms of its strengths and weaknesses. Utilize other sources to support your comments.

User Account

All Pages