What is the new value of the? portfolio

Assignment Help Finance Basics
Reference no: EM133072210

You are considering how to invest part of your retirement savings.You have decided to put $500 000 into three? shares: 56% of the money in Minerva? (currently $18?/share), 12% of the money in Baumann? (currently $91?/share), and the remainder in Martin Associates? (currently$6?/share). Suppose Minerva shares go up to $40?/share, Baumann shares drop to $53?/share, and Martin Associates shares drop to $4 per share.

a. What is the new value of the? portfolio?

b. What return did the portfolio? earn?

c. If you? don't buy or sell any shares after the price? change, what are your new portfolio? weights?

a. What is the new value of the? portfolio? The new value of the portfolio is ?$(). ? (Round to the nearest? dollar.)

b. What return did the portfolio? earn? The portfolio earned a return of ()?%. ?(Round to two decimal? places.)

c. If you? don't buy or sell any shares after the price? change, what are your new portfolio? weights? If you? don't buy or sell any shares after the price? change, the weight of Minerva is now ()%. ?(Round to two decimal? places.) The weight of Baumann is now ()%. ?(Round to two decimal? places.) The weight of Martin is now ()?%. ?(Round to two decimal? places.)

Reference no: EM133072210

Questions Cloud

Calculate income taxes currently payable : Income before tax, as shown on HWC's GAAP statement of income = $3,740,000. Calculate Income taxes currently payable
Calculate the value of european call option : Consider a European call option on a non-dividend-paying stock with a strike price $145 and expiration in 6 months. The current stock price is $140.
Standard deviation of the portfolio with share : You have a portfolio with a standard deviation of 28% and an expected return of 19%. You are considering adding one of the two shares in the table below.
What are the cash receipts for March : ABC Company has sales forecasts of the following: January = $40,000; February = $65,000; March = $52,850. What are the cash receipts for March
What is the new value of the? portfolio : You are considering how to invest part of your retirement savings.You have decided to put $500 000 into three? shares: 56% of the money in Minerva?
What is the desired inventory : ABC Company desires ending inventory equal to 20% of the next month's sales. What is the desired inventory
Expected return based on the beta : You are analysing a share which has a beta of 1.21. The? risk-free rate is 3.2% and you estimate the market risk premium to be 7.5%. If you expect the share to
Record the Adjusting Entry for A and B : Record the Adjusting Entry for A and B - Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $380,000
Determining the current interest rate : The current interest rate is 5% and CPI is 2%. How much does he need to have in his find to provide for his retirement?

Reviews

Write a Review

Finance Basics Questions & Answers

  Reddick enterprises stock currently sells for 4050 per

reddick enterprises stock currently sells for 40.50 per share. the dividend is projected to increase at a constant

  Compute the irr and payback period for project i

Compute the NPV for Project I. Should management adopt this project based on your analysis? Explain. Would your answer be different if the project were determined to be of average risk? Explain.

  Two ways you would generate the funds needed

Describe two ways you would generate the funds needed to start such a business. Next, discuss any risks or benefits you should be aware of when gathering

  What would be your pre-tax net profit be

If you bought this option for $425.25 and Alpha's stock price actually dropped to $61, what would be your pre-tax net profit be?

  Finding the average monthly return

Average Return :The past five monthly returns for PG Company are 3.55 percent, -.65 percent, 4.95 percent, 7.09 percent, and 4.64 percent.

  What is the project irr

Assume project cost is $25,000 with cash flows of $8,000/yr for 5 years; WACC = 10%. What is the project's IRR?

  The project costs 1000 and returns a rate of return of 8

your borrowing rate is 10year. your lending rate is 4year. the project costs 1000 and returns a rate of return of 8.

  What is the market value of the firm’s equity and debt

The standard deviation of the return on the firm's assets is 26 percent per year, and the annual risk-free rate is 6 percent per year, compounded continuously. Based on the Black- Scholes model, what is the market value of the firm's equity and de..

  What are the two major sources of spontaneous

What are the two major sources of spontaneous short-term financing for a firm? How do their balances behave relative to the firm’s sales?

  Interpret the value computed as well for average cost

How to compute the following in a company's economic value added (EVA) and interpret the value computed as well for Average cost of funds 10.0 %

  What is the cost of haroldson retained earnings

Haroldson Inc. common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation costs on new stock sales are 5% of the selling price. What is the cost of Haroldson's retained..

  What is the red dirt brewery terminal or horizon value

What percent ownership interest should Roger be willing to give to a venture investor, Syd, for his $500,000 investment?

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