What is the portfolios beta

Assignment Help Financial Management
Reference no: EM13944576

Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 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: EM13944576

Questions Cloud

Approach to employee relations : What sort of approach to Employee Relations is BCG adopting? What are the advantages and disadvantages of its approach, and is this advisable now the business is expanding?
Creates one new share for every warrant exercised : When warrants are exercised, the company goes through an accounting process to determine the new number of shares created. This process assumes that the company. Creates one new share for every warrant exercised
Population proportion of cars with some damage : A "wild safari" park allows visitors to drive their cars through over 400 acres to see more than 1000 animals roaming freely. The park claims that the probability of some car damage by an animal during a safari drive-thru is 0.65. Suppose 20 cars ..
Net annual rate of return to the nearest basis point : You have $16,000 to invest in a mutual fund with a NAV = $45. You choose a fund with a 4% front load, a 1% management fee, and a 0.25% 12b-1 fee. Assume that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the..
What is the portfolios beta : Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 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?
What is the banks asset utilization ratio : A bank has interest income to total assets ratio of 5% and has noninterest income of $30 million and total assets of $750 million. What is the bank's asset utilization ratio?
Bond funds and the rest in money market funds : An employee contributes $20,000 to a 401(k) plan each year, and the company matches 25% of this annually. Equity funds are earning 10%, bond funds 4% and money market funds 1%. The employee will retire in 25 years. How much money will he have at reti..
Annual annuity payment can he obtain for his retirement : Larry Smart has $10,000 which he can invest today. In addition to this amount, he can also invest $2,500 per year for thirty years (beginning one year from now) at which time he will retire. He plans on living for twenty years after he retires. If in..
What should your investment be worth in one year : You have $10,000 to invest and you are considering investing in a fund. The fund charges a front-end load of 5.75% and an annual expense fee of 1.25% of the average asset value over the year. You believe the fund's gross rate of return will be 11% pe..

Reviews

Write a Review

Financial Management Questions & Answers

  Outstanding student loan with required payments

You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 9% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide ..

  Calculate your total percentage return

You purchase 1,000 shares of Spears Grinders, Inc. stock for $45 per share. A year later, the stock pays a dividend of $1.25 per share, and it sells for $49. Calculate your total dollar return. Calculate your total percentage return.

  What is its nominal annual rate of return

Alcott's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $55.00, what is its nominal (not effective) annual rate of return?

  The term structure of interest rates is influenced by

The term structure of interest rates is influenced by

  Aftertax salvage value for use in capital budgeting analysis

Kasper Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,500, of which 80% has been depreciated. The firm can sell the used equipment today for $7,500, a..

  Derive the functional relationship between the no arbitrage

Derive the functional relationship between the no arbitrage values of the two vertical spreads, C(K1)-C(K2) and C(K2)-C(K3)?

  What is your portfolio dollar return and percentage return

The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.

  Estimate the firms cost of retained earnings

Briefly explain the following statement: Models that attempt to estimate the firm’s cost of retained earnings are simultaneously measuring the opportunity cost borne by equity investors in the firm (i.e., those that own stock in the firm).

  What is the most she should pay for this cash flow stream

Mary has the opportunity to buy the following cash flows per year beginning next year: 1) $1,000; 2) $1,000; 3) $1,000; 4) $1,000; 5) $1,000; 6) $1,000; 7) $1,000; 8) $1,000; 9) $1,000; 10) $1,000. If she can invest any funds to earn 6.35%, what is t..

  New debt and used this to buy back stock-after the recap

ABC Printing Inc. raised $140 million in new debt and used this to buy back stock. After the recap, ABC's stock price is $7.6. If ABC had 70 million shares of stock before the recap, how many shares, in millions, does it have after the recap? (Enter ..

  Comparative advantage in the interest rate for both entities

Bank A prefers borrowing at a floating rate while a non-financial firm prefers borrowing at a fixed rate. However, the fixed and floating rate facing the bank is 3% and 3-month LIBOR plus 8 basis points, respectively, while the fixed and the floating..

  Costs of goods sold-sell its inventory

Mario's Home Systems has sales of $2,720, costs of goods sold of $2,060, inventory of $484, and accounts receivable of $420. How many days, on average, does it take Mario's to sell its inventory?

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