Stu's portfolio, which is valued at $100,000 contains four (4) stocks and currently has beta coefficient equal
Fantastic news! We've Found the answer you've been seeking!
Question:
Stu's portfolio, which is valued at $100,000 contains four (4) stocks and currently has beta coefficient equal to 1.8. Stu plans to sell one of the stocks in his portfolio for $25,000. After the sale, the remaining three-stock portfolio will have a beta equal to 2.0. What is the beta coefficient of the stock that Stu plans to sell?
Expert Answer:
Answer rating: 100% (QA)
Answer To find the beta coefficient of the stock that Stu plans to sell we can use the formula for t... View the full answer
Posted Date:
Students also viewed these finance questions
-
Consider the following information: Rate of Return if State Occurs State of Economy Boom :57 Bust of Economy .66 .34 Probability of State Stock A .09 .13 Stock B Stock C .03 .19 .24 -.04 a. What is...
-
Digital Electronics An arbiter is a functional unit that allows requesters to lock resources while they are in use. (a) Describe the inputs and outputs of an arbiter for a single resource which has...
-
Meg Lanning has sole income from a trust fund which will pay her $40,000 now, $30,000 in one year and $60,000 in two years time. Meg wishes to consume $32,000 now and $42,000 in one year. If the...
-
Assuming 250 days of operation per year and a lead time of five days, what is the reorder point for Westside Auto in Problem 15? Show the general formula for the reorder point for the EOQ model with...
-
The Wall Street Journal reported that the Chinese government is planning to adopt more stringent automobile fuel efficiency standards to keep oil consumption in check. The standards vary depending on...
-
Within a cubic unit cell, sketch the following directions: (a)[110], (b)[121], (c)[012], (d)[133], (e)[111], (f)[122], (g)[123], (h)[103],
-
How may the factory overhead efficiency variance be interpreted? Is it useful for control?
-
Dean Lang Enterprises Inc. developed a new machine that reduces the time required to insert the fortunes into its fortune cookies. Because the process is considered very valuable to the fortune...
-
Develop an iterative version of the moveDisks method in the Towers of Hanoi game. Test your version with the same test suite, on the books website, developed for the recursive version. Hint: We can...
-
6. Find the approximated time to execute the following algorithm given the time to execute Statement i (T) as T = 0.009 ms, T = 0.02 ms, T3 = 45s For (e 1, e 0, k--) Statement3; When n= 10, 1000, and...
-
A 1 kg apple sits on a springy rubber sheet. It is noted that the sheet is pushed 3 cm downward by the apple. a) Find the spring constant of the rubber sheet. b) With what additional force must you...
-
Your organization is purchasing a robotic surgical machine for the operating room. Listed below is a list of related expenses. Using the information provided please calculate the break-even, Total...
-
What is the coupon rate for a 3 year par value bond that makes quarterly payments, sell today for 1105.75 and has a YTM of 8%?
-
Country A is experiencing a recessionary gap. a. Draw a correctly labeled AD-AS model showing this. Label the recessionary equilibrium price level as PL and current output as Y. b. Draw the...
-
A business loan of $25,000 at 5% compounded quarterly is repaid by a payment of $250 at the end of each month. how many payments are required to settle the loan? what is the principal portion of the...
-
Identify and describe an environmental issue and a proposed way to reduce impact and improve outcomes. The proposal could be as simple as a campaign to convince people to change daily habits that are...
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Sun Company purchased land in April 2008 at a cost of \(\$ 600,000\). The estimated market value of the land is \(\$ 700,000\) as of December 31,2011 . Sun purchased marketable equity securities...
-
Nelson Company sold land for \(\$ 100,000\) cash to Shelton Company in 2011. Required a. Was this event an asset source, use, or exchange transaction for Nelson Company? b. Was this event an asset...
-
Roger Williams started Electronics, Inc. on January 1, 2011. The company experienced the following events during its first year of operation. 1. Acquired \(\$ 15,000\) cash by issuing common stock....
Study smarter with the SolutionInn App