What must the beta be for the other stock

Assignment Help Accounting Basics
Reference no: EM131884386

Question: You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.23 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.) The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131884386

Questions Cloud

What is the present value of investment : At the end of the period you will recieve a lump sum payment of $87,500 and the proprty reverts to the lessee. what is the present value of the investment?
What is the amo Goods Sold on the income statement : A company purchased 200 units for $40 each on January 31. It purchased 165 units for $50 each on February 28. It sold 225 units for $65 each from March 1.
Explain the aspects of policy development and implementation : Explain the aspects of policy development and implementation, and share any concerns that you have identified, along with how those can be addressed.
Describe the problems associated with the prisons : Create a presentation using PowerPoint® in which you describe the prison where your prisoner was incarcerated and the outcome of their time in prison.
What must the beta be for the other stock : You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.23 and the total portfolio is equally as risky.
Describe what the balanced culture will look like in america : Describe what the balanced culture will look like in America when it finally settles. Explain in an orderly manner why you came to these conclusions.
Which serves a more practical purpose : Describe some of the ethical reasons for detaining sex offenders after they are released from prison. Compare that to the cost benefit analysis of such policy.
What is the maturity value of the promissory note : A 120-day, 8% promissory note with face value of $15,000 issued on May 1, 2012 was sold on August 5, 2012 while the cost of money is 4%.
Firm marginal cost of capital at total investment level : What is the firm's marginal cost of capital at a total investment level of $333 million?

Reviews

Write a Review

Accounting Basics Questions & Answers

  The following data are available for the quarter ending

Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2011:

  What is the maximum write-off for these purchases

Sid elects not to take additional first-year depreciation. If Sid elects § 179, what is the maximum write-off for these purchases for 2010

  What are the annual cash inflows

Investment A requires a net investment of $800,000. The required rate of return is 12% for the four-year annuity. What are the annual cash inflows

  Discuss what products adama corporation should make

It can be processed further to create XY2, at an additional processing cost of $50,000, and sold for $130,000. Discuss what products Adama Corporation should make.

  Describe the accounting procedures for both bonds

Describe the accounting procedures for both bonds and long-term notes. How are they similar? Provide an example of each. What types of features can bonds carry which make them more attractive than other financial instruments?

  Should fringe benefits be used in the computation

Should fringe benefits be used in the computation with the plaintiff's actual wages data, how can they of economic damages in a wrongful discharge case?

  Average markup percentage for setting prices

Compute the average markup percentage for setting prices as a percentage of the full cost of the product. Compute the average markup percentage for setting prices as a percentage of the variable cost of the product

  Accounts receivable turnover for organization

Assume an organization has total current assets of $200,000, total current liabilities of $75,000, inventories of $50,000, prepaid expenses of $25,000, net sales of $770,000, and beginning accounts receivable of $42,000 and ending accounts receiva..

  What is the target net income to achieve item

)How much can be paid in dividends to both partners by June 30th, What is the target net income to achieve item

  Why separate the traceable fixed costs from the common

why separate the traceable fixed costs from the common fixed costs? what is meant by a traceable fixed cost of a

  Prepare the journal entry to record depreciation expense

Andrew Company purchased equipment at a cost of $150,000 that has a depreciable cost

  Something to do with conflicts in management

Vera's job in publishing requires her to seek out new writers. She has chosen a bunch of talented writers, but none of them seem to get chosen for publishing. She thinks this has something to do with conflicts in management. How would you describe..

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