What is the resulting portfolio beta

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1. On January 1, 2016, Broker Corp. issued $2,200,000 par value 9%, 9-year bonds which pay interest each December 31. If the market rate of interest was 11%, what was the issue price of the bonds? (The present value factor for $1 in 9 periods at 9% is 0.4604 and at 11% is 0.3909. The present value of an annuity of $1 factor for 9 periods at 9% is 5.9952 and at 11% is 5.5370.)

$2,200,000.

$2,463,791.

$2,109,277.

$1,956,306.

2. An investor places $5,000 in Stock A, $4,000 in Stock B and $10,000 in Stock C. Stock A has a beta of 0.9, Stock B has a beta of 1.05 and Stock C has a beta of 1.25. What is the resulting portfolio beta?

1.12

1.09

1.07

1.17

Reference no: EM131520331

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