User Account

All Pages

What proportion of your funds are invested in asset a

Assignment Help Finance Basics
Reference no: EM132355664

Please explain how to solve this question

You own two risky assets, both of which plot on the security market line. Asset A has an expected return of 11% and a beta of 0.7. Asset B has an expected return of 20% and a beta of 1.5. If your portfolio beta is the same as the market portfolio, what proportion of your funds are invested in asset A?

Reference no: EM132355664

Questions Cloud

Why amendments were created as rights to protect individuals : Discuss the historical context of why these Amendments were created as rights to protect individuals. Research the Eighth Amendment and advocate a position.
What is the present value of an amount : What is the Present Value of an amount of $3,000 to be received in 6 years if the rate is 14% p.a.? Your answer should be calculated to the nearest dollar.
How companies using technology to disrupt the marketplace : Marketing Technologies Transforming the World (10 slides pptx) How are these companies using technology to disrupt the marketplace
What is the present value of a series of growing cash flows : What is the present value of a series of growing cash flows, where the first cash flow (at the end of the first period) is $200 the required
What proportion of your funds are invested in asset a : If your portfolio beta is the same as the market portfolio, what proportion of your funds are invested in asset A?
Accuracy of using the index futures to hedge the equity : If one were hedging a portfolio with more index holdings (i.e. 90 instead of 10), would the accuracy of using the index futures to hedge the equity portfolio
Discuss the areas of psychology and criminal justice : As scholars, practitioners and leaders in the areas of psychology and criminal justice, it is important to not only understand the past as it applies to the.
Thinking of entering the widget business : WWE is a large conglomerate and is thinking of entering the widget business. You need to find different discount rates to find the NPV of the project.
What coupon rate should the road house set on its bonds : The Road House would like to issue some semiannual coupon bonds at par. Comparable bonds have a current yield of 8.16 percent, an effective annual yield

Reviews

Write a Review

Finance Basics Questions & Answers

  What specific action regarding monetary policy

What specific action regarding monetary policy (interest rates) did the Federal Reserve undertake in or around the middle of March of this year.

  Computing and journalizing payroll amounts

Computing and journalizing payroll amounts Len Wilson is general manager of Moonwalk Salons. During 2016, Wilson worked for the company all year at a $12,200.

  Real interest rate unexpectedly falls

Suppose the real interest rate unexpectedly falls in the absence of other economic changes. What would you expect to happen to consumption.

  Problem in the finance industry in australia

Topic: A Current Issue / Problem in the Finance Industry in Australia - the specific topic will be provided in class

  What is usually considered a long-term time period

In business forecasting, what is usually considered a long-term time period? Which of the following forecasting methods can be used for short-term forecasting? Which of the following is not one of the basic types of forecasting?

  Efficient regulation of a group of genes

Briefly define an operon and explain how it enables specific and efficient regulation of a group of genes.

  What are the main points and arguments of the author

What are the main points and arguments of the author(s)? ? What is your opinion of the article? How does the article relate to your experience or current job in the public or nonprofit sector?   ? How can the points and arguments of the author(s) be ..

  Discuss issues involved with organizational transformation

You have been hired, as a consultant, by a large criminal justice agency ( The NYPD) which is struggling with organizational transformation issues.

  What is the probability of default in the first year

Assuming that the probability of default is constant each year over the 4 years and equal to, what is the probability of default in the first year?

  Internal rate of return for the investment project

You have been approached by Prescott with a request to evaluate the project. If the required rate of return is 9.65%, what are the payback period

  What is your estimate of the stock current price

The company's stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price?

  What are the tax consequences on the dividends

What are the tax consequences on the dividends after the first year if Joe is in the 33% marginal tax bracket?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd