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Q5.6 Use Value Line Investment Survey or some other source to select four stocks with betas ranging

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Q5.6 Use Value Line Investment Survey or some other source to select four stocks with betas ranging from about 0.50 to 1.50. Record the current market prices of each of these stocks. Assume you wish to create a portfolio that combines all four stocks in such a way that the resulting portfolio beta is about 1.10.

a. Through trial and error, use all four stocks to create a portfolio with the target beta of 1.10.

b. If you have $100,000 to invest in this portfolio, on the basis of the weightings deter- mined in part

a, what dollar amounts would you invest in each stock?

c. Approximately how many shares of each of the four stocks would you buy, given the dollar amounts calculated in part b?

d. Repeat parts

a, b, and c with a different set of weightings that still result in a portfolio beta of 1.10. Can only one unique portfolio with a given beta be created from a given set of stocks?

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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
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