What is the portfolio beta

Assignment Help Financial Management
Reference no: EM13927686

Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta? Weight Beta Stock A 30 pct.. 1.80 Stock B 35 pct.. 1.50 Stock C 15 pct. 1.38 Stock D 20 pct. 0.80

1.43

1.37

1.40

Reference no: EM13927686

Questions Cloud

One of marty''s partners has organized information on lead : One of Marty's partners has organized information on lead times, inventory on hand, and lot sizing rules established by suppliers Scheduled receipts are After the dotcom business he tried to start folded,
Accounting method applied to mortgage-backed securities : Explain how the accounting method applied to mortgage-backed securities made it more difficult for banks to satisfy capital requirements during the credit crisis
What is the before-tax cost of debt for olympic : Olympic Sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $32 million, a maturity of 15 years, and a yield to maturity of 10%. The coupons are paid annually. What is the before-tax cost of debt for Olympic? What ..
The payback method is biased towards short-term projects : The internal rate of return is the most reliable method of analysis for any type of investment decision. The payback method is biased towards short-term projects. The modified internal rate of return is most useful when projects are mutually exclusiv..
What is the portfolio beta : Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta? Weight Beta Stock A 30 pct.. 1.80 Stock B 35 pct.. 1.50 Stock C 15 pct. 1.38 Stock D 20 pct. 0.80
With all distributions in the form of dividends : Davis Inc. expects to have net income of $5,000,000 during the next year. Plato's target capital structure is 40% debt and 60% equity. The company has determined that the optimal capital budget for the coming year is $6,000,000. If Davis follows a re..
Develop a material requirements plan for component : Develop a material requirements plan for component H. Lead times for the end item and each component except B are one week. The lead time for B is three weeks
Calculating the opportunity cost calculate opportunity cost : The panther corporation is working at full prduction capacity producing 12000 units of a unique product everlast. Determine the formula for calculating the opportunity cost the calculate the opportunity cost of producing the 3500 units of stron glast..
Determine what master schedule entry : Determine what master schedule entry for 565 was exploded into the material requirements plan that killed the computer.

Reviews

Write a Review

Financial Management Questions & Answers

  Forecasting process-computed the projects net present value

You have just completed the forecasting process for a new project, and computed the project’s net present value to be ($500,000). You then want to understand the effect on this new project’s net present value of a $500,000 after-tax cash flow increas..

  What is the exercise value of the call option

A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $30 a share, and the option has a strike price of $25 a share. What is the exercise value of the call option? What is the options time value?

  Calculate the price with the constant dividend growth model

Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. Calculate the price with the constant dividend growth model. Calculate the price with no growth..

  What must be the expected return to stock

The returns on stocks A and B are perfectly negatively correlated (Pab=-1). Stock A has an expected return of 21 % and a standard deviation of return of 40%. Stock B has a standard deviation of return of 20%. The risk-free rate of interest is 11 %. W..

  Outstanding bond issues-require semi annual interest payment

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semi annual interest payments. Bond A has a coupon rate..

  Harvey norman

Harvey Norman is a public limited company, you have to Ensure you incorporate the end - June 2012 financial statements, and where applicable, any other recent data.

  First determine the tax issue

First determine the tax issue. Then research the issue and determine your conclusion. Finally, write up your results using the following format:  Deducting Charitable Contributions. Your clients, Sonny and his wife Honey, believe in worshiping Ta-Ra,..

  What will a share of stock be worth

River Rock, Inc. just paid an annual dividend of $2.80. The company has increased its dividend by 2.5 percent a year for the past 10 years and expects to continue doing so. What will a share of this stock be worth 6 years from now if the required ret..

  Financing a new project with new equity will reduce earnings

During recent years your company has made considerable use of debt ?nancing, to the extent that it is generally agreed that the percent debt in the ?rm's capital structure is too high.

  Statement relevant cash flows

In a financial decision, what is meant by the statement “Relevant Cash Flows”? How do you assure cash flows are relevant?

  What is the firms intrinsic value today

Terrell Enterprises recently paid a dividend, D0, of $1.50. It expects to have non constant growth of 25% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 12%. What is the firm's intrinsic value today?

  Used for cost recovery on the taxpayers tax return

Assume that a taxpayer purchases a computer in 2014 that has an estimated useful life of 10 years. If the computer is used 100 percent for business and no election to expense was made, what is the MACRS recovery period that must be used for cost reco..

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