What must the beta be for other stock in portfolio

Assignment Help Financial Management
Reference no: EM131949213

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.44 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the stock beta?

Reference no: EM131949213

Questions Cloud

Mass of calcium carbonate in a litre : What is the corresponding mass of calcium carbonate in a litre, and therefore the concentration in mg/L (not g/L)?
Estimate the terminal value of company using pe multiple : What is your estimate of the current stock price? Suppose instead that you estimate the terminal value of the company using a PE multiple.
What quantity of work in joules is required to lift : What quantity of work in joules is required to lift a 25.0 pound (11.4 kg) book bag from the floor to your lab bench which is 4.50 (1.38 m) from the floor
Let interpret the tests to figure it out : You know that you can use different indicators to determine which macromolecules are in food items. You know that you can use iodine to look for starch
What must the beta be for other stock in portfolio : what must the beta be for the other stock in your portfolio? What is the stock beta?
What will the company cash dividend be in seven years : What will the company’s cash dividend be in seven years?
Conversion factor between liter atmospheres and joules : The conversion factor between liter atmospheres and joules is 101.3 J = 1 L atm. The gas constant is 0.08206 (L atm)/(mol K). Molecular weight of Nitrogen
What is the change in price bond will experience in dollars : What is the change in price the bond will experience in dollars?
What makes the so-called great american songbook great : write a response, using 200-300 words. Some possible points: What makes the so-called Great American Songbook great? Should our definition change?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected opening price of the stock

Assume the stockholders of EX stock are in the 28 percent tax bracket. The closing price of the stock today was $67.18 a share. The firm pays a quarterly dividend of $1.65 per share. What is the expected opening price of the stock tomorrow if tomorro..

  Higher risk than all previous projects under-taken by firm

One way to adjust for new projects that have a higher risk than all previous projects under-taken by the firm is to:

  Benefits of using the dupont analysis method

What are the benefits of using the DuPont Analysis method?

  What is the annual interest payment

ABC Corporation issues a bond which has a coupon rate of 10.20%, What is the annual interest payment?

  True of the impact of tax on the cost of capital of firm

Which of the following statements is true of the impact of tax on the cost of capital of a firm?

  Explain the functions of commercial banks in oman

Explain the functions of commercial banks in Oman and the services rendered by them (select any two commercial banks in Oman)

  Economies-of-scale to reduce the average cost per case

But now assume that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated. Assume now that the average cost per case drops only to $95. What is the new required price?

  What drives your behavior when using credit cards

Other consumers are obsessed with paying off the credit card balance each month because they dislike having any debt. What drives your behavior when using credit cards?

  What proportion of the firm is financed with debt

The WACC for a firm is 13.00 percent. You know that the firm's cost of debt capital is 10 percent and the cost of equity capital is 20%. What proportion of the firm is financed with debt?

  Describe one method that could be used to estimate prices

For stocks that don’t pay dividends, describe one method that could be used to estimate their prices?

  About the investment opportunity

You have an investment opportunity in Japan. It requires an investment of $1.09 million today and will produce a cash flow of ¥128 million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.1%, the risk-free inter..

  Brewery produces bakersfield bland

Your brewery produces bakersfield Bland, a low calorie, low taste beer that has yet developed International following. In mid-march, you receive an order of 10,000 cartons from Munich, Germany for the next Oktoberfest, with payment of Euro 672,000 du..

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