What is the portfolio beta

Assignment Help Financial Management
Reference no: EM131070793

You own a stock portfolio invested 15% in Stock Q, 25% in Stock R, 40% in stock S, and 20% in Stock T. The betas for these four stocks are .8, .9, 1.3, and 1.6, respectively. What is the portfolio beta?

Reference no: EM131070793

Questions Cloud

Two different industries and compare their capital structure : What are some practical limitations for a company in trying to maximize the amount of leverage (debt) used in the capital structure? Choose two companies in two different industries and compare their capital structure? Is there anything about the par..
The cash flow follows normal distribution : Using a simulation technique calculate Pr(NPV> $250,000) and Pr(NPV
Use to meet the liquidity needs of the estate : Describe a situation for which an executor must have immediate cash needs for an estate; use an example in the recent news to illustrate. Then, choose one of the three methods that an executor can use to meet the liquidity needs of the estate. Be spe..
Straight leases and lease-purchase arrangements : Round Table Rental Yards provides construction equipment, trailers, crutches, etc., on short term rentals. Historically, Art, the owner, has purchased the items that he rents out, but his business has been expanding so rapidly that he is also conside..
What is the portfolio beta : You own a stock portfolio invested 15% in Stock Q, 25% in Stock R, 40% in stock S, and 20% in Stock T. The betas for these four stocks are .8, .9, 1.3, and 1.6, respectively. What is the portfolio beta?
Why are some risks non-diversifiable : In broad terms, why is some risk diversifiable? Why are some risks non-diversifiable? Does it follow that an investor can control the level of unsystematic risk in a portfolio, but not the level of systematic risk?
What was the value of the ira at the end of years : Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for ..
What are the dividend yield and percentage capital gain : A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. What is the total rate of return on the stock? What are the dividend yield and percentage capital gain? The Costaguanan stock ma..
Estimate of the one-year forward price of gold : The spot price of gold is $1200 per ounce. Assuming the one-year risk-free interest rate is 10% and the cost of storing gold is zero, what is your best estimate of the one-year forward price of gold?

Reviews

Write a Review

Financial Management Questions & Answers

  Highest credit risk to lowest risk the bonds

Rank order from highest credit risk to lowest risk the following bonds, with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 4.25 percent, IB Corporate bond with yield of 6.49 percent, TC Corporate bond with yie..

  Capital structure weights on a market value basis

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. What are the company's capital structure weights on a book value ba..

  What is the IRR of the new investment

ABC Company is considering a new investment that will cost 50,000 to produce a new product that the president of the company has invented. The marketing dept of the company anticipates the new cash flows from the investment will be 10,000, 12,000, 12..

  Bond with a face value-what is yield to maturity

A bond with a face value of $1,000 has 14 years until maturity, carries a coupon rate of 6.6%, and sells for $1,079. What is the yield to maturity if interest is paid semi annually? (Do not round intermediate calculations.

  What is the internal rate of return on this new plant

Microwave Oven Programming, Inc is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million (= -$6.7 million), and will produce cash flows of $3 million at the end of year 1, $4.5 million at the end of y..

  What is the total annual cost of operating the lockbox syste

What is the total annual cost of operating the lockbox system and what is the dollar benefit of the system to Drugs R Us?c. Should the firm initiate the lockbox system?

  Zero coupon bond with face value

A zero coupon bond with a face value of $1,000 is issued with an initial price of $492.96. The bond matures in 15 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding.

  The existence of unemployment compensation

The existence of unemployment compensation most likely will cause less unemployment.

  Texas constitution requires that public servants

The US Constitution, in Article 6, prohibits any religious test from being required to serve in any public office. The Texas Constitution requires that public servants acknowledge the existence of a Supreme Being.

  What is the price of the call if the standard deviation

A call option has an exercise price of $55 and matures in three months. The current stock price is $63, and the risk-free rate is 4 percent per year, compounded continuously. What is the price of the call if the standard deviation of the stock is 0 p..

  New required rate of return

Suppose rRF = 3%, rM = 9%, and rA = 15%. Calculate Stock A's beta. Round your answer to two decimal places. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to two decimal places. %

  Cash conversion cycle

Primrose Corp has $20 million of sales, $3 million of inventories, $3 million of receivables, and $2 million of payables. Its cost of goods sold is 65% of sales, and it finances working capital with bank loans at an 7% rate. Assume 365 days in year f..

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