You own $10,000 of Olympic Steel stock that has a beta of 2.2. You also own $7,000

Question:

You own $10,000 of Olympic Steel stock that has a beta of 2.2. You also own $7,000 of Rent-a-Center (beta = 1.5) and $8,000 of Lincoln Educational (beta = 0.5). What is the beta of your portfolio?

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

Step by Step Answer:

Related Book For book-img-for-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

See More Books

Question Posted: Sep 23, 2014 10:40 AM

See More Questions

You are analyzing a stock that has a beta of 1.2. The risk-free rate is 5% and you estimate the market risk premium to be 6%. If you expect the stock to have a return of 11% over the next year,...
You own $7,000 of Human Genome stock that has a beta of 3.5. You also own $8,000 of Frozen Food Express (beta = 1.6) and $10,000 of Molecular Devices (beta = 0.4). What is the beta of your portfolio?
You own $10,000 of Dennys Corp stock that has a beta of 2.9. You also own $15,000 of Qwest Communications (beta = 1.5) and $5,000 of Southwest Airlines (beta = 0.7). Assume that the market return...
How do recruitment and selection practices contribute to high performance in an organization?
Suppose that you have been hired as a summer intern at a large amusement park. Every day, your task is to conduct 200 exit interviews in the parking lot when customers leave.You need to construct...
Consider a SPAC with the following terms: 100 million units issued at $10 per share. Promote equal to 20% of the SPAC ownership. 25 million total warrants with an exercise price of $11.50 per...
An observatory has a telescope that requires an initial investment of $\$ 25,000$. A benefactor will provide a $\$ 7,500$ gift every 5 years as long as the university makes the telescope available to...
1. What are the ethical issues in this case? 2. What are some reasons the decision maker in this case might be inclined to go along? Not go along? 3. If you were the decision maker, how would you...
One of your friends owns a berry farm in South Florida. Her farm's short-run production function is 50 E0.7 and the marginal product of employment is 35 E-0.3, where E is the number of labor employed...
You have been asked to write a Visual basics program for a retail store that will allow them to calculate discounts for their employees when they buy items. Discounts are based on number of years...
Compute the expected return given these three economic states, their likelihoods, and the potential returns:
Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth Slow growth Recession...
What values of a and b minimize the value of Le (x4 - 2x) dx? a
In the late 1930s and early 1940s, Joe Louis handily defeated a series of opponents who came to be known as the Bum of the Month Club. Use what you know about rank-order tournaments to explain how...
Should the law require a person to retreat when attacked in his or her own home? Should the law make a distinction between co-occupants? Explain the justification for your view.
Suppose the NBPA had staged a strike at the depths of the Great Recession in 2009. What would economic conditions have done to the contract zones of the NBA and the NBPA?
In general, courts permit intoxication evidence only to the extent that it negates the mens rea of a specific-intent crime. Should evidence of voluntary intoxication be allowed for both...
Have traffic offenses been decriminalized in your state? To what extent? What procedures are available to contest a traffic ticket?
An aluminum sphere contains 8.55 * 10 22 aluminum atoms. What is the spheres radius in centimeters? The density of aluminum is 2.70 g/cm 3 . SORT You are given the number of aluminum atoms in a...
An educational researcher devised a wooden toy assembly project to test learning in 6-year-olds. The time in seconds to assemble the project was noted, and the toy was disassembled out of the childs...
The town of Musicville has two residents: Bach and Mozart. The town currently funds its free outdoor concert series solely from the individual contributions of these residents. Each of the two...
If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase, decrease, no...
Keystone Resources has a net profit margin of 8 percent and earnings after taxes of $2 million. Its current balance sheet is as follows: a. Calculate Keystones return on stockholders equity. b....
Palmer Chocolates, a maker of chocolates that specializes in Easter candy, had the following inventories over the past year: Month Inventory Amount January ......... $25,000,000 February ............
July August September October November December Total Average 350 450 460 390 390 360 4,960 413 3,020 3,500 4,020 3,290 3,170 3,070 $ 43,571 $ 3,631 PR 6-38 (Algo) Part 4 Compute the variable cost...
Discuss the main distinguishing features of majority, concurring, and dissenting opinions
On September 3, 2023, Wilkins purchased 1244 stock in Brass Corporation for $6,000. On December 31, 2023, the stock was worth $8,500. On August 15, 2024, Wilkins was notified that a. 2023-$0;...

You own $10,000 of Olympic Steel stock that has a beta of 2.2. You also own $7,000

Question:

Step by Step Answer:

First determine the total value of the portfolio and the weigh...View the full answer

Finance Applications and Theory

Students also viewed these Finance questions