What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM131184966

You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)

Reference no: EM131184966

Questions Cloud

Share price with the deferred dividend to the share price : A company decides to invest $250 million cash in one-year government bills yielding 4% and use the proceeds from the sale of the bills to pay a higher dividend next year. What would be the company's share price? Compare the share price with the defer..
Fixed rate mortgage with monthly payments : You are buying a house and will borrow $190,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.25 percent. Alternatively, she tells you that you can “buy d..
Bonds make semiannual payments-preferred stock : Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 35 percent. Debt: 10,000 8.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 96.5 percent of par; the bonds make semiannual payme..
What would the risk-free rate have to be for the two stocks : Stock Y has a beta of .98 and an expected return of 10.30 percent. Stock Z has a beta of .80 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
What is the beta of your portfolio : You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio?
Create portfolio that has an expected return : You have $112,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12 percent and that has only 76 percent of the risk of..
Signal ineffective or problematic governance practices : Over the past few years, the number of start-up companies attracted to either doing business themselves in the cloud, or specifically creating applications for others to use in the cloud, has grown significantly. What characteristics of the board of ..
Either doing business themselves in the cloud : Over the past few years, the number of start-up companies attracted to either doing business themselves in the cloud, or specifically creating applications for others to use in the cloud, has grown significantly. one of your new board members is very..
Find line item listed on either the income statement : Find a line item listed on either the income statement or balance sheet that would indicate an adjusting entry was necessary and describe the entry. For under armour And What do you think the effect would be on the company's financial statements if t..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate circus cost of debt and cost

Determine the appropriate weights to use in determining Circus' WACC and calculate Circus' cost of debt and cost of issuing new common equity.

  What is the future value of an annuity

What is the future value of an annuity where $3,000 is deposited every 6 months for 8 years, and earns interest at 12 percent compounded semi-annually?

  The growing importance of global marketing

Based on topic of Global Markets, please post your comments on any one of the two questions. More and more companies are looking beyond the domestic market. Identify and briefly describe some of the forces that have resulted in increased global integ..

  Explain the microassessment of country risk

Microassessment. Explain the microassessment of country risk. How could such an assessment be used instead to adjust a project's estimated cash flows?

  Indifferent between investing in corporate bond

Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an 8% dividend yield. Assume that the tax rate on dividends is 15%. What is Jose's marginal tax rate?

  Real listing for an auction of a commercial property

We have a real listing for an auction of a commercial property. It is 100% occupied and is 4,000 square feet with 500 additional square feet that can be finished in the attic. The property generates $5,112 a month and has 7 total units.

  Without flotation and cost of common equity with

The Evanec Company's next expected dividend, D1, is $2.97; its growth rate is 4%; and its common stock now sells for $32. New stock (external equity) can be sold to net $28.80 per share. What is Evanec's cost of retained earnings, rs? What is Evanec'..

  Beta of the common stock of an unlevered firm

Comparing two otherwise equal firms, the beta of the common stock of a levered firm is ____________ than the beta of the common stock of an unlevered firm.

  How much would you be willing to pay for it today

You are being offered an investment that will pay you (and your heirs) $14,330 per year forever, starting 16 years from now. If your discount rate on this investment is 5.6 percent, how much would you be willing to pay for it today?

  Issued some preferred stock-share of preferred stock cost

Pied Piper Inc. has just issued some new preferred stock. The issue will pay an annual dividend of $10 in perpetuity, beginning five years from now. If the market requires a return of 8.4 percent on this investment, how much does a share of preferred..

  Rate of return is applicable to this potential purchase

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $9,953, $6,030, and $13,798 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determ..

  Assuming the stock market is efficient and the stocks

Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct?

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