What is the beta of your portfolio

Assignment Help Financial Management

Reference no: EM131182493

You own $10,000 of Olympic Steel stock that has a beta of 2.7. You also own $7,000 of Rent-a-Center (beta = 1.5) and $8,000 of Lincoln Educational (beta = 0.5). What is the beta of your portfolio?

Reference no: EM131182493

Questions Cloud

A security that has rate of return that exceeds : A security that has a rate of return that exceeds the U.S. Treasury bill rate but is less than the market rate of return must: Question 30 options: be a risk-free asset. have a beta that is greater than 1.0 but less than 2.0. be a risk-free asset wit..

What is the risk premium of each stock : You own $10,000 of Denny’s Corp stock that has a beta of 2.9. You also own $15,000 of Qwest Communications (beta = 1.5) and $5,000 of Southwest Airlines (beta = 0.7). Assume that the market return will be 11.5 percent and the risk-free rate is 4.5 pe..

Corporate finance-what is the overall beta of debt : A company has two bonds outstanding: Bond A has a maturity of 1 year and a face value of 3,000, bond B has the same maturity and a face value of 1,500. Bond A, though, has a higher seniority than Bond B. Consider the information given above, assume n..

Expected net present value and standard deviation : Grow Corp is a medium sized commodity producer. It is already involved with industries such as oil and gas, forest products and gold exploration. Grow Corp operates in Australasia as well as in North America and the company exports everywhere in the ..

What is the beta of your portfolio : You own $10,000 of Olympic Steel stock that has a beta of 2.7. You also own $7,000 of Rent-a-Center (beta = 1.5) and $8,000 of Lincoln Educational (beta = 0.5). What is the beta of your portfolio?

Can we claim that a new less expensive process yields : Can we claim that a new, less expensive process yields the same breakage rate if we find that in a sample of 80 rods produced by the new process, 27 rods broke when subjected to that load? (Use a = 5%.)

Test the claim against the alternative : A manufacturer claims that in a process of producing drill bits, only 2.5% of the bits are dull. Test the claim against the alternative that more than 2.5% of the bits are dull, using a sample of 400 bits containing 17 dull ones. Use a = 5%.

Design further experiments that illustrate the difficulties : The 6 prime numbers together have probability 0.3 and the 14 other numbers together have probability 0.7. Test these hypotheses, using a = 5%. Design further experiments that illustrate the difficulties of random selection.

Design and perform other kinds of checks : Do this many times and see whether you can notice any "non-randomness" features, for example, too few Sixes, too many even numbers, etc., or whether your generator seems to work properly. Design and perform other kinds of checks.

User Account

All Pages