Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 04, 2024

If a portfollio consists of a stock which comprises 30%of the investment with an expected return of 14%, and a beta of 1.4, while the

If a portfollio consists of a stock which comprises 30%of the investment with an expected return of 14%, and a beta of 1.4, while the risk free asset has a return of 5%, what is the beta of the portfollio?

a. 0.42

b. 0.24

c. 0.98

d. 0.65

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

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

5th Edition

0131445650, 9780131445659

More Books

Students also viewed these Finance questions

Question

★★★★★

Select three types of pre-employment testing and discuss the purpose, effectiveness in the selection process, legal parameters for use of the testing, costs associated with administration of the...

Answered: 1 week ago

Question

★★★★★

What is a single C statement corresponds to the following two MIPS assembly instructions, add f , g , h add f , i , f Group of answer choices f = g + h - i f = g + h + i f = g - h + i f = g - h - i

Answered: 1 week ago

Question

★★★★★

Does the numerical analysis add value for the individual?

Answered: 1 week ago

Question

★★★★★

Parsons Company is planning to produce 2,000 units of product in 2017. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $16 per hour. The overhead rate is 70% of...

Answered: 1 week ago

Question

★★★★★

If a portfollio consists of a stock which comprises 30%of the investment with an expected return of 14%, and a beta of 1.4, while the risk free asset has a return of 5%, what is the beta of the...

Answered: 1 week ago

Question

★★★★★

Project requires an initial investment of $ 1680729 and the appropriate discount rate for this project is 0.18. Estimated Profitability index: $ 125096 in Year 1 $ 246351 in Year 2 $321897 in Year 3

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Java's access modifiers is TRUE? A ) The default access modifier allows access only within the same package. B ) The protected access modifier allows...

Answered: 1 week ago

Question

★★★★★

How does Noam Chomskys theory of Universal Grammar account for the ability of humans to acquire any language, and what criticisms have been leveled against this theory?

Answered: 1 week ago

Question

★★★★★

How does the Sapir-Whorf Hypothesis influence our understanding of linguistic relativity, and how have modern cognitive science and linguistic studies challenged or supported this view?

Answered: 1 week ago

Question

★★★★★

1.Shoetopia's main focus is runners and athletes, however, it targets all people who are interested to buy footwear, sneakers, sports apparel. The table below shows our market segment in detail....

Answered: 1 week ago

Previous Question Next Question