You decide to form a portfolio of the following amounts invested in the following stocks. What...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT YOUR ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Stock Apple $1,525 Microsoft $5,717 0.73 $9,025 1.95 $9,128 1.27 Amount Beta Expected Return Ford Time Warner 2.40 10.50% 16.90% 15.75% 11.80% You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT YOUR ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Stock Apple $1,525 Microsoft $5,717 0.73 $9,025 1.95 $9,128 1.27 Amount Beta Expected Return Ford Time Warner 2.40 10.50% 16.90% 15.75% 11.80%
Expert Answer:
Answer rating: 100% (QA)
To calculate the beta of the portfolio you need to weight each stocks beta by the proportion of your ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Calculate the after-tax cash flow of your stock sale in 4 years assuming you do nothing now and sell the stock as soon as it vests. Recall that the default treatment for restricted stock is that the...
-
Superstore purchased supplies for its head office. If Superstore paid $18.99 for a box of packing tape and was eligible for a 20% volume discount, what was the list price for the box of packing tape?
-
You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? Stock Exxon IBM General Motors Microsoft a) 1.01 b) 1.06 Amount $2,000...
-
All administrative laws are criminal laws and enforceable as such even though they are not part of the Criminal Code. True False
-
1. Has China's production possibilities curve been shifting outward or inward over the past 40 years? Explain your answer. 2. Why do you suppose that economists generally are more interested in the...
-
Refer to Problem 8.6. Chelsea Clinics actual results for 2015 are shown in the table below. a. Construct Chelsea Clinics flexible budget and actual operating results for 2015. b. What are the profit...
-
On March 1, 2017, a U.S. company enters a forward contract locking in the selling price of C\($1\) ,000,000, for delivery on April 15, 2017. The contract does not qualify for hedge accounting. What...
-
Abigail Trenkamp owns and operates the Trenkamp Collection Agency. Listed on the following page are the name, number of allowances claimed, marital status, information from time cards on hours worked...
-
Medifast Health is in the process of preparing a cash budget for December. Medifast had the following results for the past 3 months: Month Net patient service revenue September $350,000 October...
-
a. To simplify the analysis, assume for now that there is virtually no turnaround time between flights so the next flight can begin as soon as the current flight ends. (If an immediate next flight is...
-
Dr. Galadriel wants to estimate the population size of orcs. She catches 68 orcs and releases them back to the environment. In her second capture, she catches 128 orcs and 32 of them were marked....
-
Explain how special journals are posted.
-
The client of a CPA is a partnership. The drawings of the managing partner are considerably in excess of the partner's pro rata share of earnings. Other partners are not aware of the excess drawings...
-
Explain how transactions recorded in the sales journal and the cash receipts journal are posted.
-
How does journalising differ from posting?
-
Lerna Corporation (whose fiscal year will end December 31, 19X8) informs you on December 18, 19X8 that it has a serious shortage of working capital because of heavy operating losses incurred since...
-
Peoria Food Emporium collected the following information on its business segments: Consumer Division Restaurant Division Operating Income $167,000 $220,000 Invested Assets $92,000 $164,000 Sales...
-
How can a promoter avoid personal liability for pre-incorporation contracts?
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Indicate, in each of the following situations, the number of exemptions the taxpayers are entitled to claim on their 2012 income tax returns. Number of Exemptions a. Donna, a 20-year-old single...
-
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is...
-
The following balance sheets were drawn up immediately after Pai Ltd had acquired control of Filho Ltd. You are to draw up a consolidated balance sheet. Pai Balance Sheet Investment in Filh Ltd:...
-
Southern California Publishing Company is trying to decide whether or not to revise its popular textbook, Financial Psychoanalysis Made Simple. They have estimated that the revision will cost...
-
Prepare a consolidated balance sheet from the following balance sheets of Pop Ltd and Son Ltd which were drawn up immediately after Pop Ltd had acquired the share capital of Son Ltd. Pop Balance...
Study smarter with the SolutionInn App