Question: 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.

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 portfolio’s beta?

Step by Step Solution

★★★★★

3.47 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Investment Beta 35000 08 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

9-B-F-F-M (75).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

An individual has $35,000 invested in a stock with a beta of 0.8 and another $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...

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...

LECTURE PROBLEMS 1. 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,...

An individual has $15, 000 invested in a stock with a beta of 0.4 and another $35, 000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her...

Please read the attached document. There are 12 total questions and I will need them completed within 2 hours of picking up the assignment. I will tip $50 dollars QUESTION 1 1. Consider the following...

Please answer the attached questions. There are 12 in total and they are word form finance questions. Ensure to show all work. Will tip big. Let me know if you have any questions. QUESTION 1 1....

An individual has $30000 invested in a stock that has a beta of 0.8 and $20,000 invested in a stock with beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's...

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. These are the only two investments in what is the portfolio's beta

Create an advertisement poster for a marketing manager position An individual has $ 2 7 , 0 0 0 invested in a stock that has a beta of 0 . 8 and $ 3 8 , 0 0 0 invested in a stock with a beta of 1 . 4...

Indicate whether the following measures use a nominal, ordinal, interval, or ratio scale: a. Prices on the stock market b. Marital status, classified as married or never married c. A yes/no question...

Suppose the risk-free interest rate per annum is r. Consider two portfolios: Portfolio A: consists of . 1. a European call option of the AIA stock at strike price K, with an expiration date = 1 year...

Recall from Chapter 2 that the median of a dataset is the value with at least half of the observations at or above it and at least half of the observations at or below it. Suppose that four...

Assume you are a global manager responsible for an international subsidiary that has employees from many parts of the worldChina. India, Morocco, Brazil, and Spain. How will you go about learning how...

Discuss the transition from analysis to design and how to develop?

I. The Concept of Service a. From your understanding of LabCorp, list 10 different stakeholders in the delivery of LabCorp services. On your list, identify any of the stakeholders that are business...

Explain the difference between a waterfall SDLC and an iterative/incremental system development life cycle. Illustrate your answer with diagrams.

Explain program design and the planning tools. Write on program design tools. Begin with a definition of the PDLC. Create a table in Microsoft Word with 5 rows and 3 columns that lists the 5 program...

Evaluate the integral. x-1 x - 4x + 5 dx

Suppose rRF = 5%, rM = 10%, and rA = 12%. a. Calculate Stock As beta. b. If Stock As beta were 2.0, then what would be As new required rate of return?

Suppose rRF = 9%, rM = 14%, and bi = 1.3. a. What is ri, the required rate of return on Stock i? b. Now suppose rRF (1) increases to 10% or (2) decreases to 8%. The slope of the SML remains constant....

Suppose you manage a $4 million fund that consists of four stocks with the following investments: If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's...

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a...

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock...

Graph theinequalitybelow on thenumber line. y>3