What is her portfolio beta

Assignment Help Financial Management
Reference no: EM131592994

An individual has $25,000 invested in a stock with a beta of 0.8 and another $40,000 invested in a stock with a beta of 2.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.

Reference no: EM131592994

Questions Cloud

What is the required rate of return on stock with beta : Assume that the risk-free rate is 4% and the expected return on the market is 13%. What is the required rate of return on a stock with a beta of 1.4?
Permitted contribution for maximum disparity : Mike is a manager with Bay Electronics and his salary during the year was $160,000. Permitted contribution for maximum disparity
Return on net operating assets and growth in sales : Prepare a valuation grid showing what the stock is worth for alternative forecasts of return on net operating assets and growth in sales.
Why the seeming doubletalk by both presidents : Why the seeming doubletalk by both Presidents?
What is her portfolio beta : If these are the only two investments in her portfolio, what is her portfolio's beta?
What is the after-tax cost of internal debt : What is the after-tax cost of internal debt if the corporate tax rate is 35%?
Preparing to start a new project in an industry : JR’s is preparing to start a new project in an industry that differs significantly from its current operations.
Compute the intrinsic value per share of stock : If the required rate of return on this stock is 15.5%, compute the intrinsic value per share of Lily Co. stock.
Emery company dividends assuming constant growth : What is the growth rate expected for Emery Company dividends assuming constant growth?

Reviews

Write a Review

Financial Management Questions & Answers

  Statement of weak form efficiency

Which of the following is a statement of weak form efficiency?

  Capital gains yield and dividend yield

Suppose you know that a company’s stock currently sells for $65.30 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield.

  What is firm weighted-average cost of capital

What is a firm's weighted-average cost of capital if the stock has a beta of 1.45, Treasury bills yield 5%, and the market portfolio offers an expected return of 14%? In addition to equity, the firm finances 30% of its assets with debt that has a yie..

  Makes a decision to deny advancement opportunities

When someone with a negative attitude toward minorities makes a decision to deny advancement opportunities to a Hispanic worker, this is an example of _______

  About the after-tax cost of debt

Handy Dandy Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxe..

  Retained earnings using the percent of sales method

Ribbon Industries reported sales of $3 million and net income of $400,000 for 2010. The retained earnings balance at the end of 2012 is $7 million. Ribbon Industries has a dividend payout ratio of 30%. If sales are expected to increase by 25% next ye..

  What is the average demand during lead time

What is the EOQ for this item?- What is the average demand during lead time (Xbar L)?- What is the desired safety stock (SS)?

  The exclusive remedy rule

The exclusive remedy rule:

  Analysis and recommendations of individual brokerage firm

If a stock is purchased at the beginning of a? year, a single dividend is paid at the end of the year and the stock is sold immediately after the dividend has been received. The published analysis and recommendations of an individual brokerage firm i..

  What is the company wacc based on market value weighting

Additionally, stockholders' required return is 12.2%, and the firm's tax rate is 40%. What is the company's WACC based on market value weighting?

  Calculate trade and cash discounts-interest-interest rates

A business professional needs to easily and accurately calculate trade and cash discounts, interest, and interest rates. The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the list price? What is the amou..

  Recapitalization-stock splits and dividend payout

Define and provide each examples. Recapitalization, Stock Splits, Dividend payout, Cash conversion cycle.

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