Question: Tom O'Brien has a 2-Stock portfolio with a total value of $100,000. $65,000 is invested in Stock A with a beta of 0.75 and the

Tom O'Brien has a 2-Stock portfolio with a total value of $100,000. $65,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolios beta? Do not round your intermediate calculations. Round your answer to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Water vapor enters a compressor at 35 kPa and 160C and leaves at 300 kPa with the same specific entropy as at the inlet. What are the temperature and the specific enthalpy of water at the compressor...

Could you please help me answer these questions with step-by-step procedures for some equations? 1. You are given the following probability distribution of returns for stock J: A probability of .2...

You are given the following probability distribution of returns for stock J: A probability of 2 that the return will be 12%. a probability of 35 that the return will be 18%. a probability of 3 that...

Could you help me with this homework for BUS405 Portfolio Analysis. 1. A stock had returns of 12 percent, 39 percent, and -12 percent over the past three years. What was the standard deviation of the...

1. A stock had returns of 12 percent, 39 percent, and -12 percent over the past three years. What was the standard deviation of the stock's returns? 2. If the standard deviation of a series of...

1) Dothan Inc.'s stock has a 25% chance of producing a 37% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -24% return. What is the firm's expected rate of return? Do...

You are given the following probability distribution of returns for stock J: probability of .2 that the return will be 12%; a probability of .35 that the return will be 18% a probability of .3 that...

ABC Inc's management believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below....

26). Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.) a. The remaining balance after three years will...

Tom O'Brien has a 2-stock portfolio with a total value of $100,000 $47.500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his...

11. Bae Inc. is considering an investment that has an expected return of 45% and a standard deviation of 10%. What is the investment's coefficient of variation? Round the final answer to 2 decimal...

Which of the following statements are true? I. Activation energy of a reaction is smaller at higher temperature than at lower temperature. II. Catalyst lowers the activation energy of a reaction....

In this question you will need to complete the boxes for a T4 for Marijke using some of the following information. Enter your answers in the grid provided below the copy of the T4. This would be her...

Ejercicio 9 Es un ejercicio de bonos, quiero saber el como se llego al resultado (la manera correcta de usar las formulas) del ejercicio 9, por favor 8. Considere un bono con valor facial de $1,000...

Please prepare the journal entries Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $101,500 of raw materials on credit. b. Materials...