What is the portfolio variance if 30 pc is invested in stock

Assignment Help Finance Basics
Reference no: EM131142091

What is the portfolio variance if 30% is invested in stock S and 70% is invested in stockT?

959_h.jpg

Reference no: EM131142091

Questions Cloud

Calculate the expected growth rate of your company : Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM. Based on the assumptions that:Risk Free Rate = 4.00% RfMarket Return = 12.00% RmWe found the Beta of MT 217 Corp = 0.80
What is the cost of equity for a firm if the firm equity bet : Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%?
Draw a schematic diagram of the ideal transformer : Draw a schematic diagram of the ideal transformer connected as an autotransformer, showing the voltages, currents, and dot notation for polarity.
What is the expected return of consolidated : The Consolidated Transfer Co. is an all-equity financed firm. The beta is .75, the market risk premium is 8% and the risk-free rate is 4%. What is the expected return of Consolidated?
What is the portfolio variance if 30 pc is invested in stock : What is the portfolio variance if 30% is invested in stock S and 70% is invested in stockT?
What is the expected return on a portfolio comprised : What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
Derive the force experienced by the conductor : Consider a current-carrying conductor of length L placed in a uniform magnetic field of strength B. Derive the force experienced by the conductor.
What is the portfolio weight of stock a : You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is expected to return 7%. What is the portfolio weight of stock A?
What is the amount of the risk premium on zelo stock : Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Difference between simple and compound interest

What is the difference between "simple" and "compound" interest? What are some of the uses of compound interest in business?

  Which system should be chosen

Whichever one is chosen will be renewed indefinitely at the same cost and same OCF. Using a required return of 15%, which system should be chosen? (Show the numbers used to derive the answer.)

  Which variable most impacts profitability

Conduct a sensitivity analysis by allowing investment, sales, variable costs, and fixed costs to vary by PLUS 10% and MINUS 10% from their original estimates. Which variable most impacts profitability?

  The first three months of operations

Pet Joy Wholesale Inc., a pet wholesale supplier, was organized on May 1, 2010. Projected sales for each of the first three months of operations are as follows:

  What is the cost of equity

Southern Home Cookin' just paid its annual dividend of $0.65 a share. The stock has a market price of $13 and a beta of 1.12. The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equit..

  Cross-rates and arbitrage

Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work the problems.

  Determine the annual earnings on the released funds

Determine the following:- The amount of funds released by the lockbox arrangement, The annual (pretax) earnings on the released funds

  Calculate the straight bond value for each of the bonds show

Calculate the straight bond value for each of the bonds shown in the tablebelow.

  Shadow corp has no debt but can borrow at 65 the firms wacc

shadow corp. has no debt but can borrow at 6.5. the firms wacc is currently 10.4 and the tax rate is 35a what is

  What is the price of a 10-year zero coupon bond paying 1000

what is the price of a 10-year zero coupon bond paying 1000 at maturity if the ytm isa. 5b. 10c.

  For an investment of 1000 today the tiburon finance

for an investment of 1000 today the tiburon finance company is offering to pay you 1600 at the end of 8 years. what is

  Seriously contemplating early retirement fred wants to know

1. which of the following in addition to current arrangements would generate a taxable gift?a. a gift of14000 from the

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