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How many shares of company A and B must you purchase so your portfolio has a beta of 2.00 ? Assume you have 5,000 to
- How many shares of company A and B must you purchase so your portfolio has a beta of 2.00 ? Assume you have 5,000 to invest.
| Stock | Beta | Price |
| A | 1.00 | 10.00 |
| B | 2.50 | 5.00 |
rM =7.00%, rf = 1.00%
- What is the expected return on your portfolio?
- Stock A pays an end-of-year dividend of 0.50 and its price in 1-year is 11.00 . At the current price of 10.00 is the stock under or (over-valued) by how much?
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
4th Edition
9780132138079
