What is portfolios beta

Assignment Help Financial Management
Reference no: EM131052227

An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. 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: EM131052227

Questions Cloud

What is the composition of the dow jones industrial average : What is the composition of the Dow Jones Industrial Average?
Remain after the firm pays all other claims : As residual claimants, which investors claim any cash flows to the firm that remain after the firm pays all other claims?
Calculate the current cost of a bond with a par value : A bond has a coupon rate of 3.25%, pays coupons semiannually, and has a maturity of 10 years. If the yield to maturity is 3.50%, calculate the current cost of a bond with a par value of 100. What is the current yield on the bond? What is the value or..
What is project financing : What is project financing? Discuss the difference between the project financing and the conventional direct financing and the advantages of project financing
What is portfolios beta : An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta?
Two stocks to be correctly priced relative to each other : A stock Y has a beta of 1.50 and an expected return of 16%. Stock Z has a beta of 0.80 and an expected return of 11%. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
Levered position in delta shares of stock and selling : Suppose you construct an option hedge by buying a levered position in delta shares of stock and selling one call option. As the share price changes, the option delta changes, and you will need to adjust your hedge. You can minimize the cost of adjust..
Correlation coefficient between the returns of two stocks : The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0760. The variance of Willow is 0.2980, and the variance of Sky Diamond is 0.1250. What is the correlation coefficient between the returns of the two stocks?
Explain different option valuation methods : Explain different option valuation methods. Use the different valuation methods to value a specific option. Differentiate the intrinsic and extrinsic valuations of the option and explain how they evaluate what the different extrinsic factors are tell..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the bonds price in details

In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond's price in details. What is the cupon rate / what is the YTM?

  Costs associated with deposit outflows

____ are insurance against the costs associated with deposit outflows.

  What are the likely consequences if a multi-business firm

What are the likely consequences if a multi-business firm uses its WACC to evaluate all proposed investment projects?

  Weighted average contribution margin per unit for lambardi

Lambardi Company sells 3 types of bags. Bag A sells for $17 and has variable cost of $9.00 per unit. Bag B sells for $12 and has variable cost of $12.00 per unit. What is the weighted average contribution margin per unit for Lambardi?­­­­­­­­­­

  What is the price of the bond-maturity has a coupon rate

A bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 7.5 percent. What is the price of the bond?

  Indifferent between accepting the project and rejecting

A project that provides annual cash flows of $16,900 for eight years costs $75,000 today. What is the NPV for the project if the required return is 7 percent? At what discount rate would you be indifferent between accepting the project and rejecting ..

  Calculate the expected dividend yield-capital gains yield

Assume that it is now January 1, 2013. Wayne-Martin Electric Inc. (WME) has just developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 15% ..

  Discuss the proposition that differences in the performance

industry analysis please respond to the followingdiscuss the proposition that differences in the performance of various

  Corporate bonds and us treasury bonds

1) What are the main differences between corporate bonds and US Treasury bonds? 2) What is the absolute priority rule? Does it always hold in practice and why?

  Recently bought is expected to incur the repair costs

The new copier your company has recently bought is expected to incur the following repair costs. The dealer has offered you a 5-year maintenance contract for $800 per year payable at the end of each year. Your company’s MARR is 6% per year. Is this a..

  Consider a bond paying a coupon rate

Consider a bond paying a coupon rate of 8% per year annually when the market interest rate is 6% per year. The bond has six years until maturity and its par value is $1000. What are the bond’s price today (P0), its price 1 year from now after the nex..

  Total current assets-current liabilities and quick ratio

Corp has total current assets of $11,690,000, current liabilities of $5,728,000 and a quick ratio of 0.85. What is its level of inventory?

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