If you have a portfolio in which you invest one third of the total money in a

Fantastic news! We've Found the answer you've been seeking!

Question:

If you have a portfolio in which you invest one third of the total money in a long-term US government bond and two thirds of the total money in the S&P500 Index, what should be the beta of your portfolio? Briefly explain your answer.

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

See More Books

Posted Date: Jan 03, 2024 03:11 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Start by reading both case studies and make notes of the business type, the situation the Entrepreneur/owner finds himself or herself in, and then thoroughly understand not only the depth, but the...
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
After their divorce, Brian Bermudez and Amanda Schmidt shared custody of their son. Schmidt suspected Bermudez of abusing the child, so she refused to let him visit. Bermudez filed a petition...
The quarterly numbers of single-family housing starts (in thousands of dwellings) in the United States from 2013 through 2015 are recorded below. a. Using Quarter 1, 2013, as a base period, calculate...
A company produces and ships 16 personal computers knowing that four of them have defective wiring. The company that purchased the computers is going to thoroughly test three of the computers. The...
Give the Euler-Milstein approximation scheme for the following SDE: \[d S_{t}=\mu_{S} S_{t} d t+\sigma S_{t}^{\beta} d B_{t}\] where $\beta \in(0,1]$. Generate five paths and plot them for the...
Consider the situation of La Nacin, a hypothetical Latin American country. In 2010, La Nacin was a net debtor to the rest of the world. Assume that all of La Nacins foreign debt was dollar...
By increasing the areas of the zinc and copper plates in the Daniell cell, we can increase the amperage of the current flowing through the circuit without affecting the cell's voltage. (a) Why does...
In the investment world, commodities are typically pretty boring. From livestock to grains to steel and other metals, commodities have their ups and downs. But long term, the world will always need...
What four environmental trends are most instrumental in creating business opportunities? Provide an example of each environmental trend and the type of business opportunity it might help create.
What must a plaintiff prove to establish a claim of misrepresentation under the Securities Act of 1933, and which affirmative defenses could a defendant raise in such a case?
Why do administrative agencies grow over time? Explain.
What are the goals of the Financial Services Authority in the United Kingdom?
How is the approach of the Chicago School to antitrust policies different from the approach of the Harvard School?
Explain the steps in the informal rulemaking process.
The interference fringes formed by two coherent sources placed 1.2 mm apart are observed on a screen placed at a distance of 40 cm. If the second dark fringe is at a distance of 10 mm from the center...
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
While Steve Bouchard was a student at the University of Florida, he borrowed $12,000 in student loans at an annual interest rate of 9 percent. If Steve repays $1,500 per year, how long, to the...
Suppose that todays Wall Street Journal reports the yield on Treasury bills maturing in 30 days is 3.5 percent, the yield on Treasury bonds maturing in 10 years is 6.5 percent, and the yield on a...
Compared to the ownership structure of U.S. firms, which are open companies, what are some advantages of the ownership structure of foreign firms, many ofwhich are closed companies? Can you think of...
Which part of the brain controls posture, balance, and fine movements? (a) brainstem (b) cerebellum (c) cerebrum (d) thalamus
Multiple tissues combine to make a(n)____, a structure in the body that has a specific function.
Which part of the brain is responsible for reasoning, language, and the control of voluntary movement? (a) brainstem (b) cerebellum (c) cerebrum (d) thalamus

If you have a portfolio in which you invest one third of the total money in a

Question:

Expert Answer:

Solution To calculate the beta of a portfolio you need to consider the weights of each asset in the ... View the full answer

Principles of Finance

Students also viewed these finance questions