What would be the portfolio required rate of return

Assignment Help Finance Basics
Reference no: EM132002783

Question: A money manager is holding the following portfolio: Stock Amount Invested Beta 1 $300,000 0.6 2 300,000 1.0 3 500,000 1.4 4 500,000 1.8 The risk-free rate is 6% and the portfolio's required return is 12.5%. The manager would like to sell all of her holdings of Stock 1 and use the proceeds to purchase more shares of Stock 4. What would be the portfolio's required rate of return following this change?

Reference no: EM132002783

Questions Cloud

Discuss advanced financial models in detail : Monte Carlo Simulation is just one of a variety of simulation models that exist. Do a literature search and find a unique article published in a peer reviewed.
Explain about the single mode fiber optic cabling types : Describe two to three of the advantages and/or disadvantages associated with using each cable type for a business's network infrastructure.
How much does map have to borrow : Montana Allied Products (MAP) must borrow $1.7 million to finance its working capital requirements.The bank has offered a 45-day simple interest loan.
Box of amoxicillin antibiotic contain : How many capsules should a box of amoxicillin antibiotic contain? Medical research claims that 8 days of treatment with 3 tablets each day should
What would be the portfolio required rate of return : A money manager is holding the following portfolio: Stock Amount Invested Beta 1 $300,000 0.6 2 300,000 1.0 3 500,000 1.4 4 500,000 1.8.
Discuss the team dynamics for a highly effective team : Discuss the team dynamics for a highly effective or ineffective team of which you were a member. Can you explain why the team performed so well or so poorly?
Two-sample tests-chi square tests : What would be the means of two related populations in reference to two-Sample Tests & Chi Square Tests?
Determine which of the organizations is the most helpful : Determine which of the organizations is the most helpful for you in terms of your area of interest. Provide a rationale for your response..
How much in the april income statement : In the Month of March. Digby received orders of 89 units at a price of $15.00 for their product Dot. Digby uses the accrual method of accounting.

Reviews

Write a Review

Finance Basics Questions & Answers

  Current assets are expected to increase to 30 million over

steber packaging inc. expects sales next year of 50 million. of this total 40 percent is expected to be for cash and

  What is your portfolio return

During the year the three company's returns were - 7.6 percent, 21.4 percent, and 14.8 percent respectively. What is your portfolio return?

  Ethical ramifications of re-classifying investments

What are the ethical ramifications of re-classifying investments? Give an example of when reclassifying a long term investment as a short term investment makes financial sense for the company.

  Compute the contribution margin

Atlantic Airlines has a profit before taxes of $1 million flying at 80% of capacity with revenue of $100 million, fixed cost of $69 million and variable cost of $30 million.

  Determine which project the company should choose

Project B requires an initial outlay of $25,000 and has expected cash inflows of $6,500 for each of the following 5 years. Use a simple rate of return measure to determine which project the company should choose.

  What is fundamental beta

What is fundamental beta and how does its calculation differ from the way beta is normally measured?

  What laws and regulations affect the creation of new bank

What laws and regulations affect the creation of new bank and thrift branches and the closing of existing branches?

  Price of a company using the dividend discount mode

Calculate the price of a company using the Dividend Discount Model, the Free Cash Flow model, and the Ratio comparison. The company you will study is Intel, only now you will use the 2014 financial statement, which is in the Intel website. As return ..

  What amount will krystal pay to the short counterparty

At expiration of the forward contract, if the spot exchange rate is JPY/EUR 105.00, what amount will Krystal pay to the short counterparty?

  A firm is evaluating an accounts receivable change

A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, s..

  What is her total return in pesos

a. What is her total return in pesos? (Do not round intermediate calculations. Round your answer to 1 decimal place.Negative value should be indicated by a minus sign.)

  Which of following most likely cause bond prices to increase

Which of the following will most likely cause bond prices to increase? (Assume no possibility of higher inflation in the future.)

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