What will be the new portfolio beta

Assignment Help Financial Management
Reference no: EM131317654

You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

New portfolio beta

Reference no: EM131317654

Questions Cloud

Find the approximate value of the line integral of a vector : How do you find the work done in moving a test charge by an infinitesimal distance in an electric field?
Explain what is meant by wear-leveling in flash drives : What is the capacity of a hard drive (in GB) consisting of 120,000 tracks, 4,000 sectors, and 4 surfaces? Assume each block has 512 bytes. Explain what is meant by wear-leveling in Flash drives?
What is its required return : Suppose Universal Forest’s current stock price is $72.00 and it is likely to pay a $0.56 dividend next year. Since analysts estimate Universal Forest will have a 14.4 percent growth rate, what is its required return?
What is its required return : Suppose Paccar’s current stock price is $102.45 and it is likely to pay a $2.16 dividend next year. Since analysts estimate Paccar will have a 13.5 percent growth rate, what is its required return?
What will be the new portfolio beta : You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70?
How many comparison are there if we use bubblesort algorithm : How many comparisons are there if we use BUBBLESORT Algorithm? Using the MergeSort Algorithm, How many times the function merge (11,12) will be invoked.
What is the determinant expansion for the curl of a vector : What is the determinant expansion for the curl of a vector?
How would matt get joel to support his ideas : Read the Mini Case Study "Customer Service at Datatronics" attached and develop an understanding of the role IT plays with customer service initiatives. Matt Rubenzahl voices his concerns to his boss, Joel McGivern. Joel gives Matt the assignment ..
Indifferent between cash now or taking the annuity : You just won the Powerball, as a result you have the choice between taking $250 million today or taking a 20-year annuity. Interest rates are expected to hold at 3.75% over the next 20-years. How much would the annuity need to be annually for you to ..

Reviews

Write a Review

Financial Management Questions & Answers

  What annual rate of return must the fund portfolio

You are considering an investment in a mutual fund with a 4% front-end load and an expense ratio of 0.65%. You can invest instead in a bank CD paying 6% interest. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 0.90% per..

  Enable glenda to achieve her investment requirement

In order to expect that it will fund her retirement, Glenda needs her portfolio to have an expected return of 13.6 percent per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Sto..

  What is annualized return from two investments

Suppose you have $30,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $50 per share. You also notice that a call option with a $50 strike price and six months to maturity is available. What is y..

  The equity issued had flotation cost

Pardon Me, Inc., recently issued new securities to finance a new TV show. The project cost $13.6 million, and the company paid $685,000 in flotation costs. In addition, the equity issued had a flotation cost of 6.6 percent of the amount raised, where..

  What is the expected capital gains yield and dividend yield

The next dividend payment by Halestorm, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 per share. What is the dividend yield? Dividend yield % What is the..

  Greater the volatility of returns-the greater risk premium

"The greater the volatility of returns, the greater the risk premium" The risk premium is unrelated to the average rate of return "The lower the average return, the greater the risk premium." The risk premium is not affected by the volatility of retu..

  What is the stocks value per share

Smith Technologies is expected to generate $50 million in free cash flow next year, and FCF is expected to grow at a constant rate of 6% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 15%. If Smith has 40 million shares ..

  Volatility of an equally weighted portfolio of two stocks

Suppose Ford Motor stock has an expected return of 20% and a volatility of 40%, and Molson Coors Brewing has an expected return of 10% and a volatility of 30%. If the two stocks are uncorrelated, what is the expected return and volatility of an equal..

  True concerning an inheritance tax

Which of the following are true concerning an inheritance tax?

  Exchange rates are in currency pairs notation

Ferd Rumpledink, a foreign exchange trader at UBS Bank, is exploring covered interest arbitrage opportunities. He has 10,000,000 USD (or the CHF equivalent at the current spot rate) to invest and is considering a 180 day investment. Assume he already..

  What is the fund balance at the end of year

Brianne plans to deposit $100,000 today into a fund that will be needed at the end of 6 years. She will receive 12% interest on the fund balance. What is the fund balance at the end of year 6 assuming semi annually compounding?

  Used as the initial cash flow for net working capital

Ultimate Home Appliance Emporium is expanding its product offerings in order to satisfy a wider range of customer tastes and styles. The expansion project includes increasing the floor inventory by $610,000 and increasing its debt to suppliers by 75 ..

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