An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested
Question:
An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio’s beta?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
Investment Beta 20000 0...View the full answer
Answered By
Rohail Amjad
Experienced Finance Guru have a full grip on various sectors, i.e Media, Insurance, Automobile, Rice and other Financial Services.
Have also served in Business Development Department as a Data Anlayst
4.70+
32+ Reviews
83+ Question Solved
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Question Posted:
Students also viewed these Finance questions
-
An individual has $35,000 invested in a stock which has a beta of 0.8 and $40,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her...
-
The owner of a sporting goods store is considering remodeling the store to carry a larger inventory. The cost of remodeling and additional inventory is $60 000. The expected increase in net profit is...
-
Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a beta of 0.7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta?
-
Simplify each expression in Problems 722. Classify each answer by number of terms and degree. (x + 2y3z) - (x - 5y + 4z)
-
Discuss the role of the War Advertising Council.
-
A cosmetics manufacturers marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand & Foot Cream. Ft = 80 + 15t where F t = Annual sales...
-
One hundred devices are put on life test and the times to failure (in hours) of the first 10 that fail are \[\begin{array}{rrrrr} 7.0 & 14.1 & 18.9 & 31.6 & 52.8 \\ 80.0 & 164.5 & 355.4 & 451.0 &...
-
Warehouse System Inc. recognized service revenue of $960,000 on its financial statements in 2011. Assume, however, that the tax code requires this amount to be recognized for tax purposes in 2012....
-
Using the Trade Stats Express page and response to the following questions: What are the leading U.S. exports and imports in terms of value? Which trading partners are most important to the United...
-
Let A = 2xyax + xzay - yaz. Evaluate A dv over: (a) A rectangular region 0 < x < 2, 0 < y < 2, 0 < z < 2 (b) A spherical region r < 4
-
Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2?
-
A stocks returns have the following distribution: Calculate the stocks expected return, standard deviation, and coefficient of variation. Probability of This Demand Occurring 0.1 0.1 0.3 0.3 Demand...
-
Transactions for Mehta Company for the month of May are presented below. Prepare journal entries for each of these transactions. (You may omit explanations.) May 1 B.D. Mehta invests $4,000 cash in...
-
On January 23, 2006, CNET News.com quoted an anonymous source describing strategic plans made at a meeting of HPs board of directors. Because the meeting was held behind closed doors and with a...
-
To what extent do you think that buyer behaviour can be reduced to rules-based models applicable to a variety of service buying situations?
-
What are the duties of landlords and tenants?
-
What are some examples of when a court should interfere with the activities of a private association? Why do you think this is important to the sport industry?
-
Earth Sciences, Inc., conducted gold-leaching operations in Colorado. The process involved spraying gold ore with a toxic substance. To prevent pollution, Earth Sciences had installed a reserve sump...
-
Use a calculator to find the value of expression rounded to two decimal places. sec -1 4
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
Assume you have been given the following information on Purcell Industries: Current stock price = $15........................,,,,,..Exercise price of option = $15 Time to maturity of option = 6...
-
The exercise price on one of Flanagan Companys options is $15, its exercise value is $22, and its premium is $5. What are the options market value and the price of the stock?
-
Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $30, (2) exercise price is $35, (3) time to expiration is 4 months, (4)...
-
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $36.44 per share. She expects the price of the stock to rise to $43.62 over the next 3 years. During that time she also...
-
At the beginning of the week, Taylan's restaurant had a beginning inventory of food and beverages totaling $4,000. During the week, additional food and beverages purchases totaled $3,000. At the end...
-
1. Identify the auditor's role in the internal and external auditing processes. 2. Identify one law, regulation, and statue affecting healthcare
Study smarter with the SolutionInn App