What is the portfolios beta

Assignment Help Financial Management
Reference no: EM13762890

Bill Dukes has $100,000 invested in a 2-stock portfolio. $77,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?

Reference no: EM13762890

Questions Cloud

Specific innovation of the airmouse technology : Specific innovation of the airmouse technology, Potential risks in using this technology for an organization, How this technology can be 'integrated' in the organization
Basic present value calculations : Calculate the present value of the following cash flows, rounding to the nearest dollar:
Rate of inflation in the future-market risk premium : Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.40, and (5) its r..
Find the market risk premium-then find new portfolio beta : Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 2.20%. You now receive another $4.50 million, which you invest in stocks with an average beta of 0.65. What is the required..
What is the portfolios beta : Bill Dukes has $100,000 invested in a 2-stock portfolio. $77,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?
Entrepreneur heatlh care issues : The positive and negative ways that entrepreneurship has affected the health care field.
Blake-mouton managerial grid : The CEO of your company has asked you, the human resource manager, to conduct a study to determine whether or not male managers and female managers perceive leadership styles differently and, if differences are found, to develop a training program..
What is the value of the growth option : Martin Development Co. is deciding whether to proceed with Project X. The cost would be $10 million in Year 0. There is a 50% chance that X would be hugely successful and would generate annual after-tax cash flows of $7 million per year during Years ..
Research question and testable hypothesis : State the research question and testable hypothesis. Interpret, discuss, and support your findings with at least two other classmates.

Reviews

Write a Review

Financial Management Questions & Answers

  Bt co a beverage manufacturer manufactures one productbt

bt co a beverage manufacturer manufactures one product.bt accounts for its finished goods inventory using fifo. it

  Discuss the proposition that differences in the performance

industry analysis please respond to the followingdiscuss the proposition that differences in the performance of various

  Function of finance manager

Function of finance Manager and profit maximization does consider the impact on individual shareholder's EPS.

  Compute the market value of the bonds

Gillian Stationery Corporation needs to raise $600000 to improve its manufacturing plant. It has decided to issue a $1000 par value bond with an annual coupon rate of 8.0 percent with interest paid semi annually and a 10-year maturity. Investors requ..

  Prepare a statement of cash flows for 2013

Prepare a statement of cash flows for 2013, using the indirect method.  Assume that current assets (excluding cash) and current liabilities have remained the same on December 31, 2013.

  What is the projects IRR

A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's IRR? Round your answer to two decimal places.

  Describe the operating cycle and the cash cycle

Describe the operating cycle and the cash cycle. What are the differences? What are days sales outstanding (DSO) and why is this calculation important to a business?

  What is the equivalent annual cost of this machine

Tool Makers, Inc. uses tool and die machines to produce equipment for other firms. The initial cost of one customized tool and die machine is $850,000. This machine costs $10,000 a year to operate. Each machine has a life of 3 years before it is repl..

  Describe ?carefully what happens if the investor exercises

Explain ?carefully what happens if the investor exercises the option after two months. ?Suppose that the futures price at the time of exercise is 362 and the most recent ?settlement price is 360.

  Remain the same except for the correlation coefficient

Consider two stocks. If all their characteristics remain the same except for the correlation coefficient, which value of the correlation would make a portfolio of these two stocks the least risky?

  What is the value of gold coasts stock

Gold Coast Health System just paid an annual dividend of $1.50, which is expected to grow at a constant rate of 5 percent per year. If the current required rate of return is 15 percent, what is the value of Gold Coast's stock?

  Tax bracket is trying to decide which of the two bonds

An investor in the 28th% tax bracket is trying to decide which of the two bonds to select: one is a 5.5% US treasury bonds selling at par; the other is a Municipal pull bond with a 4.25% coupon, which is also selling at par. Which of these two bonds ..

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