Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 15, 2024

how do i find the portfolio beta? You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks

how do i find the portfolio beta?

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.56 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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

Small Business Finance And Valuation

Authors: Rick Nason, Dan Nordqvist

1st Edition

1952538122, 9781952538124

More Books

Students also viewed these Finance questions

Question

★★★★★

What are the two primary reasons organizations use nonfinancial measures in addition to financial measures for control purposes?

Answered: 1 week ago

Question

★★★★★

44. LO.4 On December 30, 2012, Maud sold land to her son, Charles, for $50,000 cash and a 7% installment note for $350,000, payable over 10 years. Mauds cost of the land was $150,000. In October...

Answered: 1 week ago

Question

★★★★★

Grand Canyon Manufacturing Inc. produces and sells a product with a price of $100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Required:...

Answered: 1 week ago

Question

★★★★★

Hult Games buys electronic components for manufacturing from two suppllers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed...

Answered: 1 week ago

Question

★★★★★

Two brothers each open IRAs in 2015 and plan to invest $10,000 per year for the next 25 years. Tom makes his first deposit on January 1, 2015, and will make all future deposits on the first day of...

Answered: 1 week ago

Question

★★★★★

Did Sanergy make ethical choices? forum The prompt for this discussion forum is "Do you believe that Sanergy made ethical choices? Why do you feel this way?"

Answered: 1 week ago

Question

★★★★★

The oil delivery tanker M/V Jolly, while delivering oil to the H.V Petram Barge at anchorage, collided with the barge causing extensive damage to both the barge and tanker. As a result of the...

Answered: 1 week ago

Question

★★★★★

This again poses a scenario. It been asked to compose an executive memo to the company's new Director of Negotiations. And have been asked to teach him/her the ropes. Using these three articles,...

Answered: 1 week ago

Question

★★★★★

Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $84 per unit and has the following expected sales (in units) for...

Answered: 1 week ago

Question

★★★★★

The vision statement describes the destination or the future state, but it is the _____ that describes the journey you take to get there. Select an answer: Kirkpatrick model McKinsey 7S model Target...

Answered: 1 week ago

Question

★★★★★

Think about your dream job. Do you know how much it pays? Working in pairs, go to Monster.ca (www.monster.ca) and use its Salary Wizard to find out how much that job would earn in the nearest large...

Answered: 1 week ago

Question

★★★★★

Why are employees at APTN motivated by the rewards and recognition they receive?

Answered: 1 week ago

Question

★★★★★

If Mabels Labels decided to use a different approach to performance, what approach would you suggest? Why? It does work at Mabels Labels, an Ontario company that designs, manufactures, and sells...

Answered: 1 week ago

Previous Question Next Question