What return will now be expected on the portfolio

Assignment Help Finance Basics
Reference no: EM132505665

An investor was expecting a 18% return on his portfolio with beta of 1.25 before the market risk premium increased from 8% to 10%. Based on this change, what return will now be expected on the portfolio?

Reference no: EM132505665

Questions Cloud

Return investors require from hightech : If the risk free rate is 5.2% and the market risk premium is 7.1% what is the return investors require from HighTech?
Develop the job title and essential duties for new position : Develop the job title and essential duties for the new position. Write detailed job description suitable for listing on the organization's website.
Calculate the portfolio return for a two asset portfolio : Calculate the PORTFOLIO RETURN for a two asset portfolio assuming the following information. Asset A has an expected return of 11.0%
Is different from such celebrity photos that see today : This is a photo of a celebrity of the day, an actress. Besides its grayscale colors, is it different from such celebrity photos that we see today? How?
What return will now be expected on the portfolio : Based on this change, what return will now be expected on the portfolio?
Determining the net present value : A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues:
What would an investor in mapco stock require : What would an investor in Mapco's stock require as a return, if the Treasury bond rate is 1.25%?
How much should she expect to have when she retires : Meghan is 45 years old and has just been hired to a new firm. She has $150,000 in the retirement plan of her former employer. She can roll that money
Determining the irr for project : Your firm is contemplating the purchase of a new $625,000 computer-based order entry system. The system will be depreciated straight-line to zero over

Reviews

Write a Review

Finance Basics Questions & Answers

  Make journal entry to record transaction

Steve Smith, the owner of Steve's bowling alley, bought $10,000 of bowling shoes on 1/31/07. He paid $5,000 in cash, and applied rest on account.

  What is the adjusted sales price for comparable property

You are appraising the sale of a property and have identified a comparable that sold 2 months ago for $800,000. Real estate prices have been softening

  What is the most you would pay for investment

You are looking into an investment that will pay you $5,000 per year for the next 8 years. If you require a 9% return, what is the most you would pay

  Compare in terms of price and activity

Compare the Amazon company's stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.

  How many days are in the operating cycle

ABC Corp. currently has an inventory turnover of 6, a payables turnover of 7.48, and a receivables turnover of 14.32. How many days are in the operating cycle?

  Provide possible reasons for this difference based on data

In 2005 IBM had a return on equity of 26.7 percent, whereas Hewlett-Packard's return was only 6.4 percent. Use the decomposed ROI framework to provide possible reasons for this difference based on the data below: IBM HP NOPAT/Sales 9.0% 2.7% Sales/Ne..

  Why firms in these industries would prefer

Firms in the real estate investment trusts (REITs), airlines, electric utilities, and paper products industries tend to have high leverage. Explain why firms in these industries would prefer to have high leverage.

  Which company had higher operating leverage

PepsiCo's operating income was $8.04 billion in 2009 and $6.96 billion in 2008. Based on these figures, which company had higher operating leverage?

  Month mortgage payment

You are purchasing a business building valued at $317,000. You can find a mortgage at 6.9% if you can put 17.5% down.

  Repurchase of shares

What is the total market value of the equity after the repurchase? What is the per-share value after the repurchase?

  Explain how foreign countries accounting differences make

assess the gaps with the availability of information related to international markets industries and stocks.

  Meyersdale office supplies

Meyersdale Office Supplies has common equity of $40 million. The company's stock price is $80 per share and its market/book ratio is 4.0. How many shares of stock does the company have outstanding?

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