User Account

All Pages

What are the beta and the expected return of anakin

Assignment Help Financial Accounting
Reference no: EM132928059

Problem 1: Anakin forms an aggressive growth portfolio by investing 22% of his savings in Ford stock, 22% in Nissan stock, 22% in Subaru stock, 13% in an index fund, and the last 21% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1, whereas the bond fund is a good proxy to the riskless asset. The beta of Ford stock is 1.1, the beta of Nissan is 1.51, and the beta of Subaru is 1.85. If the expected return of the market index is 12% and the risk-free asset yields 7%, what are the beta and the expected return of Anakin's portfolio? Give your answer rounded to two decimal places.

Reference no: EM132928059

Questions Cloud

Explaining the purposes of these financial statements : Write a Note to Channing explaining the purposes of these financial statements and how they worked
What are indistinguishable units : What are indistinguishable units, and how are tantamount units decided? The beginning of this segment depicts measure costing and the movement of costs
Determine what is the expected return of the stock : Given a risk-free rate of 5%, a market return of 10.4%, and a beta of 1.2, what is the expected return of the stock? Enter your answer as a percentage.
What types of items are always included in notes : List the major advantages to notes to the financial statements. What types of items are always included in notes
What are the beta and the expected return of anakin : What are the beta and the expected return of Anakin's portfolio? Anakin forms an aggressive growth portfolio by investing 22% of his savings
What is the approximate beta of portfolio of spielberg : The beta of SMSN is equal to 1.2. If Spielberg puts 75% of his money in SMSN stock and 25% in MSI stock, what is the approximate beta of his portfolio?
Will the company still have to pay : Since he will be on vacation during Canada Day, will the company still have to pay general holiday pay to Tommy, or will Canada Day be
How the recognition of and payment for printing equipment : Describe (with relevant calculations) how the recognition of and payment for the printing equipment would be accounted for in the 2017 financial statements
How much would you need to save : If the annual percentage rate (APR) is expected to be 14 percent, compounded monthly, from now until time 29, how much would you need to save

Reviews

Write a Review

Financial Accounting Questions & Answers

  Establishes a sinking fund for plant retooling

A company establishes a sinking fund for plant retooling in 6 years at an estimated cost of $850,000. How much should be invested semi annually into an account paying 8.76% compounded semi annually? How much interest will the account earn in the 6 ye..

  What is the amount of impairment loss

What is the amount of impairment loss recorded by Mickey Mouse Corp during 2017?

  Find what was the net cash flow from operating activities

What was the net cash flow from operating activities using the indirect method (assume that no other account balances change that would impact the computation).

  How much additional spendable income will each investor have

How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation?

  What is the interest expense of the bonds on december

Interest is payable annually on July 1. HARD uses the interest method to amortize bond discount. What is the interest expense of the Bonds on December 31, 20x8?

  Question for each of the subsequent situations shows

question for each of the subsequent situations shows whether the organization could recognize the described contributed

  Make recommendations regarding marketing decisions

How can we best interpret the results in order to make recommendations regarding marketing decisions? Do you think the same person or group should do both the interpretation and the recommendations? Why or why not?

  What is the company inventory turnover ratio

Dale Enterprises has sales of 945,000 a gross profit margin of 0.279 and inventory of 202,000. What is the company inventory turnover ratio

  Does having excess amounts of cash means

Does having excess amounts of cash means that the firm has maximized wealthy? Discuss the above statements in light of your understanding of wealth maximization

  Calculate the firms cash conversion cycle

Calculate the firms cash conversion cycle, its daily cash operation expenditure and the amount of resources needed to support its cash conversion cycle.

  Calculate the accounting break-even and the cash break-even

Calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

  Make a journalize the business transactions

Make a Journalize the business transactions. Mark Stein invests $9,000 cash in the business in exchange for shares of common 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