What is portfolio beta

Assignment Help Financial Management
Reference no: EM131613047

You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 40 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 1.4, 0.5, 1.5, and 0.8, respectively. What is the portfolio beta? (Round your answer to 3 decimal places.)

Portfolio beta

Reference no: EM131613047

Questions Cloud

Annual interest and earnings after taxes for conservative : What would the annual interest and earnings after taxes for the conservative and aggressive strategies be
What is market risk premium : A stock has a beta of 1.3 and an expected return of 14.9 percent. what is the market risk premium?
What is computron net operating profit after taxes : What is Computron’s net operating profit after taxes (NOPAT)? What are operating current assets? What are operating current liabilities?
What is the payback period for this investment : This investment will cost the firm $235,000 today, and the firm's cost of capital is 12 percent. What is the payback period for this investment?
What is portfolio beta : You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 40 percent in Stock S and 15 percent in Stock T. What is the portfolio beta?
What is the npv for this investment : What is the NPV for this investment?
Expected return-what must the risk-free rate be : What must the risk-free rate be?
What must expected return on the market be : What must the expected return on the market be?
What is the project irr : If the firm's cost of capital is 14 percent and its tax rate is 40 percent, what is the project's IRR

Reviews

Write a Review

Financial Management Questions & Answers

  Considering a project with a project-level beta

Giggle is considering a project with a project-level beta of 0.74. The appropriate discount rate for the project is:

  Cash conversion cycle

Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 38 days, and a payables deferral period of 36 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What i..

  Maintenance cost between northern and southeast airlines

relationship between direct engine maintenance cost between Northern and Southeast Airlines.

  Belief in the efficient market hypothesis

Your co-worker tells you that he has beaten the market for each of the last three years. Suppose you believe him. Does this weaken your belief in the efficient market hypothesis? Why?

  Costs of acquiring one atm and of employing one teller

What are the present values of the costs of acquiring one ATM and of employing one teller?

  External equity financing

Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system.

  According to the pecking-order theory

According to the pecking-order theory, a firm’s leverage ratio is determined by:

  At what price would the bonds sell

Suppose Ford Motor Co. sold an issue of bonds with a 10-year maturity, $1,000 par value, and 10% coupon rate. Two years after the bonds were issued, the going rate of interest on similar bonds fell to 6%. At what price would the bonds sell? Instead o..

  Evaluating project which will increase annual sales

Olivia's Boutique is evaluating a project which will increase annual sales by $85,000 and annual costs by $52,000. The project will initially require $140,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-yea..

  Compute the unit sales price at which blake must sell

Compute the unit sales price at which Blake must sell its product in the current year in order to earn a budgeted target profit of £200,000 - Calculate a value in response Unhappy about the prospect of a price increase, Blake's sales manager wou..

  Stocks pay annual dividends that are expected to continue

Kwame owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 179 dollars. Both stocks pay annual dividends that are expected to continue forever. The expected return on Fairfax Paint s..

  What is the future value of your windfall in three years

What is the present value of your? windfall? What is the future value of your windfall in three years? (on the date of the last? payment)?

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