FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please do it and explain ? coportate finance A portfolio consists of two stocks, Stock A and Stock B. The volatility of Stock

can you please do it and explain ?
coportate finance image text in transcribed
A portfolio consists of two stocks, Stock A and Stock B. The volatility of Stock A is 0.5 and the volatility of Stock B is 0.25. The proportion of the portfolio's value that is represented by shares of Stock A is 0.3. The correlation of the returns of the two stocks is 0.6. Calculate the beta of Stock A with the portfolio. O 1.5970 You Answered O 1.7778 O 1.6874 O 1.4162 Correct Answer O 1.5066

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

The Fiscal Impact Handbook

The Fiscal Impact Handbook

Authors: David Listokin

1st Edition

1138535672, 978-1138535671

More Books

Students also viewed these Finance questions

Question

★★★★★
The financial statements of Clark & Powell report net credit sales of $2 million. Accounts receivable are $270,000 at the beginning of the year and $280,000 at the end of the year. Calculate Clark &...

Answered: 1 week ago

Question

★★★★★
Realize the significance of strategic HRM as a foundation for having a strong business.

Answered: 1 week ago

Question

★★★★★
Wundts concept of psychology involved two major programs. Describe each of them.

Answered: 1 week ago

Question

★★★★★
An apparatus commonly used for measuring the reflectivity of materials is shown below. A water-cooled sample, of 30-mm diameter and temperature Ts = 300 K, is mounted flush with the inner surface of...

Answered: 1 week ago

Question

★★★★★
no excel please 28.24. For a nondividend paying stock, you are given (i) The stock's price is 75. (11) The stock's volatility is 25%. (ii) The continuously compounded risk-free interest rate is 6%,...

Answered: 1 week ago

Question

★★★★★
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,040,000 (280,000 hours at $18/hour) and that factory overhead would be $1,580,000 for...

Answered: 1 week ago

Question

★★★★★
You delegated the development of dessert recipe cards to Bobby. Bobby has completed the dessert cards ready for the deadline of March 10 th . Bobby has met with you to go through the dessert....

Answered: 1 week ago

Question

★★★★★
Question 19 (3 points) Listen Thames Inc.'s most recent dividend was $2.5 per share (Do = $2.5). The dividend is expected to grow at a rate of 4% per year. The risk-free rate is 3% and the return on...

Answered: 1 week ago

Question

★★★★★
Assume the US enacted tax rate is 30%, and a non-US subsidiary\'s local enacted rate is 25%. If the non-US subsidiary\'s outside basis for book exceeds outside basis for tax, at what total rate will...

Answered: 1 week ago

Question

★★★★★
Canada Sweden Real rate of interest required by investors 2% 2% Nominal interest rate 7% 4.5% Spot rate Swedish Krona SEK/CAD $0.1323 Use the differential in expected inflation to forecast the new...

Answered: 1 week ago

Question

★★★★★
In regards to productivity through the use of determining the number of units produced during each work hour by employees. How does this produce an accurate representation of each individual employee...

Answered: 1 week ago

Question

★★★★★
Evaluate the impact of unions on nurses and physicians.

Answered: 1 week ago

Question

★★★★★
Describe the impact of strikes on patient care.

Answered: 1 week ago

Question

★★★★★
Evaluate long-term care insurance.

Answered: 1 week ago

Previous Question Next Question