What is the weighted average beta of the following $100,000 portfolio? 10 Points Portfolio Ticker Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
![What is the weighted average beta of the following $100,000 portfolio? 10 Points](https://dsd5zvtm8ll6.cloudfront.net/questions/2023/12/6576b0b559cbe_1702324103853.jpg)
![Portfolio Ticker Company Investment UPS AAPL MMM TSLA UPS $ Apple $ 3M Tesla Total 20,000 15,000 $ 45,000 $](https://dsd5zvtm8ll6.cloudfront.net/questions/2023/12/6576b0bee8d21_1702324111950.jpg)
Transcribed Image Text:
What is the weighted average beta of the following $100,000 portfolio? 10 Points Portfolio Ticker Company Investment UPS AAPL MMM TSLA UPS $ Apple $ 3M Tesla Total 20,000 15,000 $ 45,000 $ 20,000 $100,000 Beta 1.1 1.3 0.98 2.28 Weighted Average What is the weighted average beta of the following $100,000 portfolio? 10 Points Portfolio Ticker Company Investment UPS AAPL MMM TSLA UPS $ Apple $ 3M Tesla Total 20,000 15,000 $ 45,000 $ 20,000 $100,000 Beta 1.1 1.3 0.98 2.28 Weighted Average
Expert Answer:
Answer rating: 100% (QA)
To find the weighted average beta of the portfolio you multiply the beta of each investment by the p... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
Students also viewed these finance questions
-
Online shopping has revolutionized the marketplace, with technology and the internet giving consumers quick access to a wide range of items and services. How the change addresses the distribution of...
-
The yield to maturity of a firm's debt is 4%. The tax rate is zero. The beta of its equity is 1.2. The risk-free rate is 1% and the market risk premium is 7%. Of the market value of the debt is 25...
-
The preferred stock of Nadine Fashions pays an annual dividend of $2.25 a share and sells for $38.75 a share. The tax rate is 32 percent. What is the firm's cost of preferred stock? 7.26% 9.5% 8.39%...
-
2. The long-term loan from World Bank had been taken out on 1 April 2018 to fund the company. According to the loan agreement, five annual installments of R36 000 are to be paid each year commencing...
-
Rolling Meadows Country Club Inc. is a privately owned corporation that operates a golf club. Rolling Meadows reported the following inflows and outflows of cash during 2011: Rolling Meadows had cash...
-
Which type is theoretically the most relevant? Why? AppendixLO1
-
E2.14. Calculating Stock Returns: Nike, Inc. (Easy) The shares of Nike, Inc., traded at $55 per share at the beginning of fiscal year 2008 and closed at $67 per share at the end of the year. Nike...
-
The price elasticity of demand for air travel differs radically from first-class (1.3) to unrestricted coach (1.4) to restricted discount coach (1.9). What do these elasticities mean for optimal...
-
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2018. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2018 $ 1,950,000 Purchases to date...
-
Bulloch County never has allowed liquor to be sold in restaurants. However, in three months, county residents are scheduled to vote on a referendum to allow liquor to be sold by the drink. Currently,...
-
What computerized technique would be used to perform sentiment analysis on annual accounting report? O a Association rule b. Text mining Oc Words counting Od Decision trees
-
Classic Auto Parts sells new and used auto parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2012, its first year of operations, Classic...
-
The following information is available for Market Inc. and Supply Inc. at December 31, 2012: Required a. What is the accounts receivable turnover for each of the companies for 2012 ? b. What is the...
-
Buck Novak, the chief executive officer of Novak Corporation, has assembled his top advisers to evaluate an investment opportunity. The advisers expect the company to pay \($400,000\) cash at the...
-
Verify the log-likelihood in equation (16.4) for the Tobit model. In L = = In { 1-0 (x-di)} 1:y=di 122. + (y; - x) 02 (16.4) i:y;>di
-
Milo Company is considering the purchase of new equipment for its factory. It will cost \($250,000\) and have a \($50,000\) salvage value in five years. 1 he annual net income from the equipment is...
-
Kellogg's Corp. a manufacturing Company, has provided data concerning its operations for April. The beginning balance in the raw materials account was $23,500 and the ending balance was $43,000. Raw...
-
Evaluate each logarithm to four decimal places. log 0.257
-
The most recent financial statements for TZ Schenkel Co. are shown here: Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend...
-
In April 2014, International Lease Finance Corporation (ILFC) announced a deal to purchase eight Airbus A330-200 and A350-900 passenger aircraft. ILFC then signed a long-term lease contract on the...
-
A portfolio is invested 25 percent in Stock G, 55 percent in Stock J, and 20 percent in Stock K. The expected returns on these stocks are 8 percent, 14 percent, and 18 percent, respectively. What is...
-
22.7. Your U.S. based company has an opportunity to break into the British market, but your CEO is concerned about the currency risk of such a venture. You estimate that sales in the United Kingdom...
-
22.11. Disney wants to borrow 24 million for three years while Metallgesellschaft wants to borrow US$20 million for three years. The spot exchange rate is currently 1.20/$. Suppose Disney and...
-
22.10. General Motors has an obligation to deliver 2 million barrels of oil in six months at a fixed price of $25 per barrel. European options exist to buy oil in six months at $28 per barrel. Assume...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App