What is the beta of the portfolio

Assignment Help Financial Accounting

Reference no: EM131013867

Q.1 An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

Q.2 Security I has a beta of 1.3, the risk-free rate is 4%, and the expected return on the market is 11%.

What is the expected return for Security I?

Reference no: EM131013867

Questions Cloud

Discuss the application of the magnetic vector potential : Discuss the duality between the radiation fields of a small circular loop antenna with those of a Hertzian dipole at the center of the loop and aligned with its axis.

What is the present worth of the machine : Cupid Chocolates bought a candy making machine that had an initial cost of $83760. It has a salvage value of $11164. Its operating costs are $5058 per year. It is saving the company $1245 per year because it is more efficient. The company anticipates..

What is the slope of the security market line : 1. If the market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04, what is the slope of the security market line?

New high-technology melting process : Macho Iron Works was established in 1989. Four years later, the company went public. At that time, Fred Macho, the original owner, decided to establish two classes of stock. The first represents Class A founders’ stock and is entitled to 10 votes per..

What is the beta of the portfolio : Q.1 An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

The current forward interest rate for the third year : You are the borrower in an FRA where you will pay 5% (annual compounding) for the third year on $1 million. Write down the calculate process. The current forward interest rate for the third year is 5.1% (annual compounding). The 3-year zero rate is 4..

What amount of unamortized premium bond should frick report : Frick Co. has outstanding a 7%, ten-year $100,000 face-value bond. The bond was originally sold to yield 6% annual interest. Frick uses the effective interest rate method to amortize bond premium, and does not elect the fair value option for reportin..

A car company is offering a choice of deal : A car company is offering a choice of deals. You can receive $500 cash back on the purchase, or a 3 percent APR, 4-year loan. The price of the car is $15,000 and you could obtain a 4-year loan from your credit union, at 7 percent APR. Which deal is c..

Calculate their expected payments from a proposed fee : The HMO projects its hospital budget at 465 patient days per 1,000 members, with a payment rate of $1,000 per, patient day. The covered population is 25,000 members which produces a hospital budget of $11,625,000 (465 x 25x $1,000). The HMO proposes ..

User Account

All Pages