What is the beta of portfolio

Assignment Help Financial Management
Reference no: EM131986050

You have $160,000 to invest in a portfolio containing Stock A and Stock B. You wish to create a portfolio with an expected return of 19%. Stock A has an expected return of 17.5% and a beta of 1.7. Stock B has an expected return of 16.2% and a beta of 0.9. What is the beta of your portfolio?

Reference no: EM131986050

Questions Cloud

Describe how users of the financial statements may benefit : Describe how users of the financial statements may benefit from communications about these matters in an audit report
Estimated market return and risk-free rate : Spartan Machinery stock trades at $60 per share with a beta of 1.5, an estimated market return of 12%, and a risk-free rate of 5%.
Angiotensin converting enzyme : Angiotensin Converting Enzyme (ACE) is produced by endothelial cells throughout the body, but the majority is produced in the lungs.
What midcorp do with respect to electric power protection : Describe what MidCorp should do with respect to electric power protection. If your recommendation is different from Acme's, explain why.
What is the beta of portfolio : Stock A has an expected return of 17.5% and a beta of 1.7. Stock B has an expected return of 16.2% and a beta of 0.9. What is the beta of your portfolio?
What is patient gfr : Consider a drug which is exogenous to the body. The drug is filtered, but not secreted, reabsorbed, or metabolised by the kidneys.
What is its after-tax cost of debt : If the company’s bonds are selling for $965 now, and the company’s tax rate is 40%, what is its after-tax cost of debt?
Writers presence - mcquade and atwan : After each assigned reading , you must answer the 1st two questions that follow TEXTBOOKS - The Writer's Presence (8th Ed.) McQuade and Atwan
Identify country that you are comparing with united states : Identify the country that you are comparing with the United States.

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the equivalent annual cost

Determine the equivalent annual cost at 12% for the after-tax cash flow.

  The net worth of the bank falls by

If interest rates increase from 5 percent to 6 percent, the net worth of the bank falls by?

  Normally pays an annual dividend

MMK Cos. normally pays an annual dividend. The last such dividend paid was $3.05, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 14 percent. If the firm just announ..

  Replaced at the end of its life with an equivalent machine

EAC Approach You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $80 initially, and then $125 per year in maintenance costs. Machine B costs $150 initially, has a life of ..

  Two tax expense numbers might differ

Write a letter to Jackson outlining why these two tax expense numbers might differ.

  Shares of international business machines

You would like to sell 100 shares of International Business Machines (IBM).

  Most important challenges facing multinational firm

Discuss the most important challenges facing a Multinational firm (from the United States) in TODAY's global environment

  What are the roles of the originator

What are the roles of the originator and investment banks in securitization - Describe the role of the credit rating agencies in securitization.

  What is the speculative premium on the warrant

What is the speculative premium on the warrant if the stock price is $48.93 per share?

  Taxable equivalent yields of tax exempt municipal bonds

Consider the following yields on bonds with approximately 20 years to maturity: Calculate the taxable equivalent yields of the tax exempt municipal bonds for the following marginal tax rates: 10%, 15%, 28%, 35%. For which of these tax rates will an i..

  What is the required rate of return on the new portfolio

Mr K manages an RM35 million mutual fund that has a beta of 1.2 and an 11.50% required return. What is the required rate of return on the new portfolio?

  Task involves an analysis of general economic conditions

Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeco

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