What is the beta of portfolio

Assignment Help Financial Management
Reference no: EM131508139

You have $150,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 14.1 percent. Stock X has an expected return of 12.93 percent and a beta of 1.42, and Stock Y has an expected return of 8.51 percent and a beta of .74.

How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131508139

Questions Cloud

Discuss what might have caused the variance : Prepare an example of your chosen variance for your manufacturing company. Discuss what might have caused the variance.
Environmental analysis for your proposed new division : Conduct an internal and external environmental analysis for your proposed new division and its business model.
Compare three methods to determine fair value of investments : From the e-activity, prepare a report to management in which you compare and contrast at least three methods to determine the fair value of investments.
Declaring personal bankruptcy : Describe the factors you should consider when assessing the choices related to declaring personal bankruptcy.
What is the beta of portfolio : What is the beta of your portfolio? How much money will you invest in Stock Y?
Analyse and address potential risks and opportunities : BUS2004/BUS211 Assessment. Identify, analyse and address potential risks and opportunities when conducting international business
Stakeholders ethical issues and social responsibility : For this week's discussion you will consider stakeholders' ethical issues and social responsibility in the corporate culture.
Identify the variables in expectancy theory : What are the implications of Theories X and Y for motivation practices?
Calculate annual depreciation tax shield is firm tax bracket : Calculate the annual depreciation tax shield is the firm's tax bracket is 35%.

Reviews

Write a Review

Financial Management Questions & Answers

  Comparing ovo different capital structures-all-equity plan

Break-Even EBIT Yasmin Corporation is comparing Ovo different capital structures, an all-equity plan (Pian l) and a levered plan (Plan Il). Under Plan J, Yasmin would have 170,000 shares of stock outstanding. Under Plan ll. there would be 120,000 sha..

  Assume the company maintains its current operating capacity

Lloyd and Harry Limo Service, Co. is currently operating at 92% of fixed asset capacity. Fixed assets on the balance sheet are $593,000. Current sales are $640,000, and are projected to grow to $792,000. How many in new fixed assets are required to s..

  Computer stocks currently provide expected rate of return

Computer stocks currently provide an expected rate of return of 14%. MBI, a large computer company, will pay a year-end dividend of $1 per share. If the stock is selling at $20 per share, what must be the market's expectation of the growth rate of MB..

  Invest in stock portfolio

You have $251,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L, with an expected return of 10.2 percent. If your goal is to create a portfolio with an expected return of 12.05 percent,..

  Explain by citing specifics from the forecast

How much does Cartwright need to borrow and when? Explain by citing specifics from the forecast - Does Cartwright have the ability to pay the interest expense? Explain by citing specifics from the forecast.

  Company capital structure weights on market value basis

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding.  What are the company’s capital structure weights on a market value..

  Equity accounts-how many new shares will be distributed

The owners’ equity accounts for Freya International are shown here: Common stock ($.40 par value) $ 27,500 Capital surplus 375,000 Retained earnings 818,120 Total owners’ equity $ 1,220,620 a-1 If Freya stock currently sells for $40 per share and a 1..

  What must the coupon rate be on the bonds

The bonds make semiannual payments. What must the coupon rate be on the bonds?

  What are the common stockholders residual claims to earnings

Folic acid inc. has $20 million in earnings pays $2.75 million in interest to bondholders and $1.80 million in dividends to preferred stockholders. a) What are the common stockholders residual claims to earnings? b) What are the common stockholders l..

  Calculate the after-tax component cost of capital

Calculate the after-tax component cost of capital, kc, for a 7.5 percent convertible debenture sold at par and due to mature in 25 years.

  What was total dollar return on investment over past year

Suppose you bought a 9 percent coupon bond one year ago for $880. The bond sells for $950 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total rate of return on this investm..

  What is your net profit from this position

A call option on a stock, with time to maturity of 2 months and strike price of $25.67, is currently trading at a premium of $1.78 per share. If you buy options on 20,000 shares (200 contracts), and then at maturity the stock is trading at $22.76, wh..

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