What is the expected return of a portfolio

Assignment Help Finance Basics
Reference no: EM131725646

Suppose Autodesk stock has a beta of 2.15?, whereas Costco stock has a beta of 0.75 If the? risk-free interest rate is 4.5% and the expected return of the market portfolio is 14.0%?, what is the expected return of a portfolio that consists of 55% Autodesk stock and 45% Costco? stock, according to the? CAPM?

The expected return is ----------- ?%. (Round to two decimal? places.)

Reference no: EM131725646

Questions Cloud

Explain the significance of the transaction to an analyst : For the past three years DMR, Inc. did not write off numerous accounts of customers who were in default and unlikely to pay their bills.
Principal and accrued interest on the bond : The bond matures tomorrow. How much will Rhett receive in total from this? investment, assuming all payments are made on these bonds as? expected?
What is the profitability index of the investment : The investment will cost you $ 8,638 today. If the appropriate Cost of Capital (quoted interest rate) is 9.3 %, what is the Profitability Index of investment.
What is? unida unlevered cost of? capital : a. What is? Unida's unlevered cost of? capital? b. What is? Unida's after-tax debt cost of? capital?
What is the expected return of a portfolio : If the? risk-free interest rate is 4.5% and the expected return of the market portfolio is 14.0%?, what is the expected return of a portfolio.
How might you rationalize your behavior : How might you rationalize your behavior if you worked for this company and rationalize the unethical behavior your company expects.
What would you say and what would you show to support : If asked for your current opinion about sustainability in business, what would you say and what would you show to support that opinion?
What should the stock be currently selling for : If the market rate of return on this stock is 16%, what should the stock be currently selling for?
What are the initial cash flows in year 0 : What are the Initial Cash Flows in Year 0? What are the Operating Cash Flows in Year 2?

Reviews

Write a Review

Finance Basics Questions & Answers

  How would the value change if a firm decides to increase

How would the value change if a firm decides to increase its dividend payout, and if financial distress and agency/signaling costs are the only relevant concerns?

  How you would allocate budget

Requirement - is a short proposal indicating channels/media you would suggest and how you would allocate budget? We want to see which channels would you consider/reject/select and why, and some high level mechanics of the campaign

  Amount of goodwill that the home centre

The Home Centre is buying Nadine's for $37.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisiti..

  How to handle year-end adjusting entries

The accounting manager at Antwerp's TranquilStay Hotel has prepared the following profit and loss statement that pertains to the most recent accounting.

  Computation of npv of the project

Computation of NPV of the project and the Crescent Company is considering the purchase of a new machine costing

  What differences are three among the hero thecelebrity and

what differences are three among the hero thecelebrity and the role model? write an essay in which you define and

  Find expected divided yield on fincorp common

What it is the 1) expected total return on FinCorp's common and preferred stock. 2) expected divided yield on FinCorp's common and preferred stock. 3) expected capital gains yield on FinCorp's common and preferred stock.

  How much external financing will the firm have to seek

How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with external financing.

  Currency effects

When South Korea's export growth stalled, some South Korean firms suggested that South Korea's primary export problem was the weakness in the Japanese yen.

  What are the assumptions made by the eoq model

What factors determine the size of the investment a firm has in its accounts receivable? Which of these factors are under the control of the financial manager?

  Communicating financial performance

Today's organizations can be very large and complex. As a result, many people within the organization may not have a clear vision of how their role contributes to the overall value of the organization or an understanding of the financial metrics u..

  What is the capital rationing amount

Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000.

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