What is the portfolios beta

Assignment Help Financial Management
Reference no: EM13885434

Bob has $200,000 invested in a 2-stock portfolio. $120,000 is invested in Stock A and the remainder is invested in Stock B. Stock A's beta is 0.75 and B’s beta is 1.25. What is the portfolio's beta?

0.50

0.75

0.95

1.00

1.25

Reference no: EM13885434

Questions Cloud

Shareholders as the annual dividend : Michael's, Inc. just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.60 percent. If you require a rate of return of 9.8 percent, how much are you willing to pa..
Preparing to calculate its cost of debt : Handy Dandy Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxe..
Begin paying annual dividends : NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.63 a share. The following dividends will be $0.68, $0.83, and $1.13 a share annually for the following three years, respec..
Two different names of the market risk are systematic risk : Two different names of the market risk are systematic risk or _____ risk. We measure the market risk of a stock using _____.
What is the portfolios beta : Bob has $200,000 invested in a 2-stock portfolio. $120,000 is invested in Stock A and the remainder is invested in Stock B. Stock A's beta is 0.75 and B’s beta is 1.25. What is the portfolio's beta?
Annual sales figure when evaluating this project : Winnebagel Corp. currently sells 33,000 motor homes per year at $71,000 each, and 13,500 luxury motor coaches per year at $108,000 each. The company wants to introduce a new portable camper to fill out its product linl; it hopes to sell 28,000 of the..
Decided to bid on the contract : Romo Enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. If your tax rate is 30 percent and you require a retur..
Corporate bond paying nine percent semi-annual coupon : Consider a 30-year corporate bond paying 9 percent semi-annual coupon. The current yield to maturity is 11 percent. a. Find the modified duration. b. Refer to part a. If the interest increases by 25 basis points, what is the exact change in price? c...
Cash flows over the four-year life of the investment : An investment has an installed cost of $535,800. The cash flows over the four-year life of the investment are projected to be $213,850, $230,450, $197,110, and $145,820. If the discount rate is zero, what is the NPV?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluate the impact of a major customer

Analyse the current financial state of Anthony's Orchard and evaluate the impact of a major customer cancelling their expected order.

  Exchange rate under the theory of interest parity condition

Explain how an increase in the interest rate in Europe would affect the interest rate in the United States and the dollar-euro exchange rate under the theory of Interest Parity Condition. What factors does this theory leave out?

  Compute the cost of capital for the three alternatives

The board of directors of Hamilton health plan is considering the following alternative financial structures: A. 30% debt 70% equity B. 40% debt 60% equity C. 50% debt 50% equity The cost of debt is expected to change between 1% and 5% over the range..

  The fixed asset will be depreciated straight-line to zero

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Budgeted statements contained in the case study

Devise a benchmarking review for Anthony's Orchard - Explain the potential value of a BSC to Anthony's Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation.

  Prepared to make monthly payments

You’re prepared to make monthly payments of $190, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly. How many payments will you have made when your account balance reaches $10,000?

  Municipal bond is currently priced to yield

A 5.5% 20 year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket , this bond would offer an equivalent taxable yield of what?

  Mortgage loan-how much is the effective annual rate

We receive a mortgage loan for 20 years.. The mortgage rate is 6% per annum. Additionally, the monthly payment we ought to make to the bank to amortize the loan is $2, 500. Fourthly, if we accumulate a lot by year 10(end of the year), how much would ..

  Find the yield rate minglu earned on her investment

Stephen borrows $1000 at 5% for 20 years from Minglu. After 10 years, Minglu sells the rights to future payments to Aipeng for $P. Find P, if Aipeng plans to accumulate a sinking fund at 4% to replace P and desires a yield of 6%. Find the yield rate ..

  Money market account with an annual return

You plan to deposit $1,500 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 6 years? Round your answer to the near..

  Review the financial statements

Analyse the current financial state of Anthony's Orchard and evaluate the impact of a major customer cancelling their expected order.

  Robertrsquos new way vacuum cleaner company is a newly

robertrsquos new way vacuum cleaner company is a newly started small business that produces vacuum cleaners and belongs

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