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

Question

1 Approved Answer

CSL, a pharmaceutical company, has a beta of 1.2 and Woolworths has a beta of 0.8. The risk-free rate of interest is 4% and the

CSL, a pharmaceutical company, has a beta of 1.2 and Woolworths has a beta of 0.8. The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 40% of its money in CSL and the balance in Woolworth?CSL, a pharmaceutical company, has a beta of 1.2 and Woolworths has a beta of 0.8. The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 40% of its money in CSL and the balance in Woolworth?

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

Step: 3

blur-text-image

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

Public Finance

Public Finance

Authors: Charles Francis Bastable

1st Edition

1375520083, 978-1375520089

More Books

Students also viewed these Finance questions

Question

★★★★★
Apparently, the European Union has stricter privacy laws than the United States, and not many U.S. companies are willing to comply with the EU Directive on Data Protection. How would you resolve the...

Answered: 1 week ago

Question

★★★★★
I trying to write a program in C++ using vectors its called a card shuffle program and I don't know where to start. Here is a copy of what is required for this assignment. This is the first part of a...

Answered: 1 week ago

Question

★★★★★
Elaboration occurs when one adds meaning to new information by connecting with already existing knowledge. In other words, we apply our schemas and draw on already existing knowledge to construct an...

Answered: 1 week ago

Question

★★★★★
Marathon, Inc., manufactures two types of shoes: X-Trainer and Court. Last year, Marathon had the following costs and revenues: Marathon, Inc., currently uses labor costs to allocate all overhead,...

Answered: 1 week ago

Question

★★★★★
nitialize a tuple, as shown in Snippet 5 . 3 7 : cars = ( ' coupe ' , 'coupe', 'coupe', 'carbiolet', 'sedan' ) Snippet 5 . 3 7 Use a tuple method to count the number of times the coupe element...

Answered: 1 week ago

Question

★★★★★
How do you quantify the ROI that HR brings to the organization? Explain

Answered: 1 week ago

Question

★★★★★
Activity 2-5: Clamping and Bending System A fabrication shop is planning to purchase a used pneumatic clamping and bending machine to help streamline pro- duction. Before the fabrication shop can...

Answered: 1 week ago

Question

★★★★★
Problem 9 Recall that in problem 6 Tanner takes two classes: economics from Prof. Olimov and survival skills from Prof. Pear Grylls. Tanner wants to get the best possible grades in these two classes....

Answered: 1 week ago

Question

★★★★★
Blue book Citation Format ses.ucf.edu/courses/139681 1/assignments/7429060 TAKE SOME TIME TO PRACTICE PUTTING THE FOLLOWING INTO BLUEBOOK CITATION FORMAT: 1. Batman versus Superman is a United States...

Answered: 1 week ago

Question

★★★★★
The slope of Chad's indifference curvexc=Axp (A is any constant) at point(xp,xc)isA(xp)2 . What is Chad's marginal rate of substitution at consumption bundle(xp,xc)=(15,7)? Group of answer choices...

Answered: 1 week ago

Question

★★★★★
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has...

Answered: 1 week ago

Question

★★★★★
Reword the following logical explanations for a negative message so that each has positive rather than negative words and tone. Consider what can be done rather than what cannot. Add necessary...

Answered: 1 week ago

Question

★★★★★
Global. Interview a person who is a native of another country to learn how negative messages would be conveyed in his or her homeland. (Objectives 3, 4, 5, and 6)

Answered: 1 week ago

Question

★★★★★
You own a 300-acre farm outside the city. Jack Ripsaw runs a local sawmill and has requested that you let him cut pulpwood from your farm and split the profit 50-50. Mr. Ripsaws reputation for...

Answered: 1 week ago

Previous Question Next Question