You hold the positions in the table below. Price Shares Beta Advanced Micro Devices $8.00 303...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You hold the positions in the table below. Price Shares Beta Advanced Micro Devices $8.00 303 4.92 FedEx Corp. $165.00 127 1.52 Microsoft $12.00 121 0.95 Sara Lee Corp. $19.00 239 0.99 If you expect the market to earn 17.60 percent and the risk-free rate is 5.60 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) You hold the positions in the table below. Price Shares Beta Advanced Micro Devices $8.00 303 4.92 FedEx Corp. $165.00 127 1.52 Microsoft $12.00 121 0.95 Sara Lee Corp. $19.00 239 0.99 If you expect the market to earn 17.60 percent and the risk-free rate is 5.60 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Expert Answer:
Answer rating: 100% (QA)
To calculate the required return of the portfolio we need to use the cap... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these finance questions
-
The treasurer of Kelly Bottling Company (a corporation) currently has $200,000 invested in preferred stock yielding 10 percent. He appreciates the tax advantages of preferred stock and is considering...
-
You are preparing a basic vinaigrette dressing. The recipe requires 250 ml of vinegar and 500 ml of oil. What items of equipment could you use to measure these ingredients?
-
Cost-Volume-Profit (CVP) analysis can be used to determine the effect of changes in costs and volumes on a company's net profits. This project assignment assumes that you are newly hired as an...
-
Two cars cover the same distance in a straight line. Car A covers the distance at a constant velocity. Car B starts from rest and maintains a constant acceleration. Both cars cover a distance of 460...
-
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has...
-
What happens if you specify an invalid format string?
-
Snookers Restaurant is open from 8:00 am to 10:00 pm daily. Besides the hours that they are open for business, workers are needed an hour before opening and an hour after closing for setup and...
-
1. Explain why all of the following values are equal. What is the value shown in each line below? 9-2 9-x-y 1 dzdydx 9-x2-y2 /9-y2 9-y2-22 2 1 dxdzdy 9-y2 8 3 9-x c9-xz 70 1 dydzdx
-
Create a Windows Forms application. Use the following names for the project and solution, respectively: States Capitals Project and States Capitals Solution. Save the application in the VB2017\Chap04...
-
Which of the following feature is used to identify a male cockroach from a female cockroach (a) Forewings with darker tegmina (b) Presence of a boat shaped sternum on the 9th abdominal segment (c)...
-
Total cost of ownership considers the net present value of money while total landed costs do not. Total cost of ownership considers the entire life cycle of a product while total landed costs only...
-
Bosworth et al. (2007) state that high quality strategic workforce planning can reduce staff wastage, as well as having other important benefits. Drawing on Mintzbergs theory of strategic planning...
-
In Beckhard's formula for successful change, the V stands for the vision of the desired state. In Beckhard's formula for successful change, the R stands for a realistic approach to the change. Select...
-
) What is the marginal rate of substitution, MRS? State the definition and explain, in words, what it means. b) MRS will have an influence on the shape of an indifference curve. What influence? c)...
-
Write broadcast story (10 lines/30 seconds) only no print for this one based on the information Focus on the news. What's most important in this story? The dead/injured, and the traffic issues. 2....
-
Mike and Jane's charitable contributions are listed below. Which of the contributions are tax-deductible? How will these be reported on Schedule A for the 2019 tax year? Mike attended the Rocky...
-
In a system with light damping (c < cc), the period of vibration is commonly defined as the time interval d = 2/d corresponding to two successive points where the displacement-time curve touches one...
-
Compute the amount of each foreign currency that can be purchased for one million dollars: a. 1 Korean won = $0.0009 b. 1 Malaysian ringgit = $0.3238 c. 1 Thai baht = $0.0331
-
Suppose that Lil John Industries equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the firm also has 30 thousand bonds outstanding, which are selling...
-
The spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.1867. If the interest rate in the United States is 5 percent and in New Zealand is four percent, then what should be the...
-
Go to http://management.about.com/lr/project_time_ management/174690/1/ and click on Project Management on the left side of the screen. When you consider several of the articles on time management in...
-
Consider the following information that you have compiled regarding the steps needed to complete a project. You have identified all relevant steps and have made some determinations regarding...
-
Key in a search with the prompt projects in in which you select a country of interest (e.g., projects in Finland). Many of the projects generated by such a search are government-sponsored...
Study smarter with the SolutionInn App