What will be required return on your portfolio

Assignment Help Financial Management
Reference no: EM131997712

You have been managing a $5 million portfolio that has a beta of 1.45 and a required rate of return of 11%. The current risk-free rate is 3.75%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.70, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131997712

Questions Cloud

The yield-to-maturity has stayed constant year-over-year : The price of the bond has dropped, even though the yield-to-maturity has stayed constant year-over-year.
What the value of these upfront home ownership costs : What the value of these upfront home ownership costs would be if we invested them in stocks instead of purchased the home.
Interest rate parity and purchasing power parity : Calculate whether interest rate parity, purchasing power parity, and international fisher effect conditions hold between Japan and the US.
Environment for raising capital for start-up companies : What are the current environment for raising capital for start-up companies?
What will be required return on your portfolio : If you invest the money in a stock with a beta of 0.70, what will be the required return on your $5.5 million portfolio?
Most recent fiscal year for both apple and alphabet : How many common shares were repurchased during the most recent fiscal year for both Apple and Alphabet (in both shares and $'s)?
Calculate the debt-to-equity : Equity multiplier LotsofDebt times LotsofEquity times Calculate the debt-to-equity.
How much money will you have on date of your retirement : How much money will you have on the date of your retirement 40 years from today?
Week news about financial management : Find a story in this week's news about financial management. Find something interesting and have a good time with it!

Reviews

Write a Review

Financial Management Questions & Answers

  Create the pro forma income statement

Suppose Mick's is projecting a 20% increase in sales for the coming year, and that cost of goods sold and all expenses remain a constant percentage of sales. Also assume that the amount of depreciation and interest paid and the firm's tax rate (35%) ..

  Evaluating two different cookie-baking ovens

You are evaluating two different cookie-baking ovens. what is each machine’s EAC?

  Short-term rates or long-term rates tend to be more volatile

Describe briefly, what the yield curve looks like currently. Based upon the demonstration, do short-term rates or long-term rates tend to be more volatile?

  Deciding whether to own or rent a single family residence

You are deciding whether to own or rent a single family residence. How many years would you need to own this property in order to generate a positive IRR?

  What is dividend yield-expected price gain-holding return

What is the dividend yield, expected price gain and total expected holding return for 2017, 2018, 2019?

  Accounts would costs be recorded on financial statements

A job was started on May 15, completed on June 27, and delivered to the customer on July 6. In which accounts would the costs be recorded on the financial statements dated May 31, June 30 and July 31?

  Requires initial fixed asset investment

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.134 million.

  Calculate each project payback period

Calculate each project's payback period. Compute the NPV of each project when the firm's cost of capital is 0%, 10%, and 20%.

  What will the cash flows associated with this project be

Excel Precision Inc. spent $450,000 on research to develop a new product. What will the cash flows associated with this project be?

  Appropriate discount rate-what is the NPV of this investment

If the appropriate discount rate is 15 percent, what is the NPV of this investment?

  Recreate the firms cash flow statement for the year

You have just been hired as a financial analyst for Basel Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for..

  What is the convenience yield

Suppose the current spot price of oil is $68.75/bbl. what is the convenience yield?

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