Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

14) Your portfolio has a beta of 1.33. The portfolio consists of 14 percent U.S. Treasury bills, 25 percent stock A, and 61 percent stock

14) Your portfolio has a beta of 1.33. The portfolio consists of 14 percent U.S. Treasury bills, 25 percent stock A, and 61 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?

1.77

0.56

1.44

0.87

5.32

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Mathematics

Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller

12th Edition

0135109787, 9780135109786

More Books

Students also viewed these Finance questions

Question

★★★★★

Based on the following information, calculate the expected return and standard deviation for the two stocks. State of Economy Probability of State of Economy Rate of Return If State Occurs Stock B...

Answered: 1 week ago

Question

★★★★★

Explain the connection between cultural norms and product choice. What is Niveas strategy in respecting cultural diversity while pursuing a global brand strategy?

Answered: 1 week ago

Question

★★★★★

=+b) What is the best choice using the expected-value approach? Section 23.7

Answered: 1 week ago

Question

★★★★★

Bates & Hill Fabricators' marketing department has identified the following monthly expenses that will be needed to support the company's sales and administrative functions. In addition to these...

Answered: 1 week ago

Question

★★★★★

KHARILA CASE KHARILA is a manufacturer and distributor of printed stationery products that are sold in a wide variety of retail stores around the country. There are two divisions: Manufacturing and...

Answered: 1 week ago

Question

★★★★★

help Use the confidence interval to find the margin of error and the sample mean. (1.54,2.08) The margin of error is (Round to two decimal places as needed.) The sample mean is (Type an integer or a...

Answered: 1 week ago

Question

★★★★★

1.Describe the concept of Communities of Practice. Why are "Communities of practice" Important? (2 Marks) 2.How can organizations cultivate communities of practice? How can these communities of...

Answered: 1 week ago

Question

★★★★★

Your target audience for this project is somebody completely unaware of MS SharePoint, they have absolutely no idea what they are. This should make it easy when choosing how to present your...

Answered: 1 week ago

Question

★★★★★

Given the following information, write the equation of an ellipse. 11. Vertices: (0, 4) and (0, -4); Foci: (0, 23) and (0, -23) 12. Vertices: (0, 5) and (0, -5); Co-vertices: (1, 0) and (-1, 0) 13....

Answered: 1 week ago

Question

★★★★★

Imagine you are running an online retail business. How would you protect your customer's privacy? Why is it important? Now, think about how you can protect your business and customers from cyber...

Answered: 1 week ago

Question

★★★★★

According to Wikipedia (Right-to-work Law): A "right-to-work" law is a statute in the United States that prohibits union security agreements, or agreements between labor unions and employers, that...

Answered: 1 week ago

Question

★★★★★

A solid cylinder has radius A and length L, its axis coincides with the x3-axis and its ends lie in the planes x3 = 0 and The x3 = -L. cylinder is subjected to simultaneous axial tension, bending,...

Answered: 1 week ago

Question

★★★★★

The quality of the argumentation

Answered: 1 week ago

Question

★★★★★

The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

Answered: 1 week ago

Question

★★★★★

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.

Answered: 1 week ago

Previous Question Next Question