Question: Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $42,500 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. $42,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.32. What is his portfolio's beta? Do not round your intermediate calculations, Round your final answer to 2 decimal places. Oa. 1.04 b. 1.05 Oc. 1.10 d. 1.06 Oe. 1.08

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!

To loosen a frozen valve, a force F of magnitude 70 lb is applied to the handle of the valve. Knowing that = 25, Mx = - 61 lb ( ft, and Mz = - 43 Ib ( ft, determine and d. 4in 11 in

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...

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...

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...

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...

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...

Tom Noel holds the following portfolio: Stock Investment Beta A $150,000 1.40 B $50,000 0.80 $100,000 1.00 D $75,000 1.20 Total $375,000 Tom plans to sell Stock A and replace it with Stock E, which...

46). A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. The three stocks currently held all have b = 1.0, and they are...

For every order that has been received, display the order ID, the total dollar amount owed on that order (you'll have to calculate this total from attributes in one or more tables; label this result...

Decide how to graphically present the GSS data on the number of children (by gender of respondent) from Chapter 2, Exercise 9. a. Would you choose to use bar charts or pie charts? Explain the reason...

I got c ( 1 + x ) ^ 4 but thats not what chegg is saying it is and i was wondering what i did wrong | ) = e l n | ( 1 + x ) 4 | + c 1 | y | = e l n | ( 1 + x ) 4 | * e c 1 y = ( 1 + x ) c 1 * e c 1 y...

Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp., at fair market value. The fair market value of the building was determined to be...

1) Modify class GradeBook as follows: a) Include a second string data member that represents the course instructor's name. b) Provide a set function to change the instructor's name and a get function...

Question 22 (3 points) SA6: As a Human Resources Manager, conducting Job Evaluations is one of your key responsibilities. What conditions would necessitate when you need to make changes, either to...

Who responds to your customers complaint letters?

What are all the ways your customers can get back to you in written format?

What is your average response time to complaint letters? Do you use form letters when responding? If your response takes more time than usual, do you let your customers know why you havent gotten...