What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM13922997

You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at $27 per share. The betas for the stocks are .6, 1.2, and .5, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM13922997

Questions Cloud

Create a portfolio that has an expected return : You have $122,000 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 14 percent and that has only 72 percent of the risk of..
Explain why your selected health threat is global : Explain why your selected health threat is global and not national in nature. Using the international human right to health as a framework, describe the severity of this problem. Focus particularly on the availability, accessibility, acceptability, a..
Uses retained earnings as its source of common equity : Quantitative Problem: Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. What is the firm's weighted average cost of ..
What is the beta of your portfolio : You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at $27 per share. The betas for the stocks are .6, 1.2, and .5, respectively. What is the beta of your portfolio?
Securities are correctly priced-what is the risk-free rate : Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
What is percys cost of common equity : Percy Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 11%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 14.30%...
Dividend on its stock : Merton Enterprises pays a constant $5 dividend on its stock. The company will maintain this dividend for the next 10 years and then cease paying dividends forever, if your required rate of return is 8 percent, what is the value of this stock?
Capital asset pricing model-required rate of return on stock : Using the capital asset pricing model (CAPM), what is the required rate of return on a stock if the risk-free rate of return is 5%, the return on the market is 11%, and beta is equal to 1.2?

Reviews

Write a Review

Financial Management Questions & Answers

  What will the after-tax annual interest savings

Five years ago, Northwest Water (NWW) issued $40,000,000 face value of 30-year bonds carrying a 8% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $4 million of flotation costs on these bonds over their 3..

  Company have to wait before expanding operations

Winston enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $158.82 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for..

  What is the yield to maturity on treasury strips

What is the yield to maturity on a Treasury STRIPS with 7 years to maturity and a quoted price of 77.859?

  Strategy-cost and payoff of the options and total payoff

A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options are worth $11, $14, and $18. What is the maximum net gain (after the cost of the options is taken into account)?..

  Producing a return that is equal to the required return

If an investment is producing a return that is equal to the required return, the investment's net present value will be:

  What nominal annual rate will they charge their customers

Bank 1 lends funds at a nominal rate of 10% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal annual rate will they charge their..

  The first financial statement firm produces

The first financial statement a firm produces is the _____.

  However you have identified a potential market for your

however you have identified a potential market for your products unfortunately it is located in a country that does not

  Projects for both firms have an estimated rate of return

Northern Boat Mfg., Inc. has a weighted average cost of capital (WACC) of 16.8 percent, given the firm’s current boat-making operations. Home Builders, Inc. has a WACC of 14.4 percent, given that the firm builds new, single-family homes. Both firms a..

  Working capital cash flow

Cool Water Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows, What is the..

  Unbiased predictor of future exchange rates

Provide proof and please be specific about required conditions on relations between financial variable(s) such as of both countries.

  What is its current value

A firm recently paid a $0.70 annual dividend. The dividend is expected to increase by 14 percent in each of the next four years. In the fourth year, the stock price is expected to be $54. If the required return for this stock is 16.5 percent what is ..

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