User Account

All Pages

What is the expected return on a portfolio

Assignment Help Finance Basics
Reference no: EM132515940

UPS, a delivery services company, has a beta of 1.3, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and the market risk premium is 5.5%. What is the expected return on a portfolio with 60% of its money in UPS and the balance in Wal-Mart?

Reference no: EM132515940

Questions Cloud

Calculate the price of a 12-month long call option : Using the following information, calculate the price of a 12-month long call option using a two-step binomial tree procedure. S0 = £15, K = £14, r = 5%
Why the case poses an ethical challenge for an organization : Create your own ethical case study based on your experiences and readings. You can use either your chosen professional area or a situation at the national.
How should you apply the change in your financial reports : Agency X acquired a machine on January 1, 2016 for P10,000,000. How should you apply the change in your financial reports
Describe the impacts of the patient protection : Describe the impacts of the Patient Protection and Affordable Care Act on marketing for healthcare services and health plans.
What is the expected return on a portfolio : What is the expected return on a portfolio with 60% of its money in UPS and the balance in Wal-Mart?
Cheapest combination of funds exhausted : What is Norwalk's breakpoint, where the cheapest combination of funds is exhausted?
What is the interest expense related to first bond payment : Your Company issued a $150,000 face value bond on January 1, 2020. What is the interest expense related to the first bond payment on June 30, 2020
How much money will you make in book after 3 years : After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?
Crime prevention through environmental design : Crime Prevention Through Environmental Design (CPTED) is a major concept in physical security.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is Sahara adjusted cash balance

Sahara Company's Cash account shows an ending balance of $650. The bank statement shows a $29 service charge and an NSF check for $150.

  Computation of base case npv and abandonment option

Computation of Base Case NPV and abandonment option of a Project

  What is the firms operating liability leverage

A firm has a return on common equity of 13.4 percent, a net after-tax borrowing cost of 4.5 percent, and a return of 11.2 percent on net operating assets.

  Opinion polls attempt to predict the results of local

opinion polls attempt to predict the results of local state and federal elections. discuss six reasons why the results

  What is the implied market risk premium

Based on the following data for AAA stock, what is the implied market risk premium?

  Which system should the firm chose

Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever system is chosen, it will not be replaced when it wears out If the tax rate is 34 percent and the discount rate is 11 percent, wh..

  A two-year zero-coupon treasury bond with a maturity value

a two-year zero-coupon treasury bond with a maturity value of 1000 has a price of 873.4387. a one-year zero-coupon

  What is the expected return on neal-co

The stock of Neal & Co. has a beta of 1.40. The risk-free rate of return is 3.5% The risk premium is 8%.

  Mcbean inc reported net income of 300000 for the year ended

mcbean inc. reported net income of 300000 for the year ended december 31 2009. mcbean inc. had 50000 shares of common

  Represent the citizenry

Discuss if you think policy makers truly represent the citizenry or are they pressured by third party special interest groups

  Find price per share after the recapitalization is announced

What is the price per share after the recapitalization is announced? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.)

  Concept of marginal utility

Newspaper vending machines are designed so that once you have paid for one paper,  Using the concept of marginal utility, explain why these vending machines differ.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd