Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 03, 2024

If you have a portfolio in which you invest one third of the total money in a long-term US government bond and two thirds of

If you have a portfolio in which you invest one third of the total money in a long-term US government bond and two thirds of the total money in the S&P500 Index, what should be the beta of your portfolio? Briefly explain your answer.

Step by Step Solution

★★★★★

3.33 Rating (141 Votes )

There are 3 Steps involved in it

Step: 1

Solution To calculate the beta of a portfolio you need to consider the weights of each asset in the ... 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

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

Principles of Finance

Authors: Scott Besley, Eugene F. Brigham

6th edition

9781305178045, 1285429648, 1305178041, 978-1285429649

More Books

Students also viewed these Finance questions

Question

★★★★★

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 1 week ago

Question

★★★★★

Start by reading both case studies and make notes of the business type, the situation the Entrepreneur/owner finds himself or herself in, and then thoroughly understand not only the depth, but the...

Answered: 1 week ago

Question

★★★★★

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...

Answered: 1 week ago

Question

★★★★★

After their divorce, Brian Bermudez and Amanda Schmidt shared custody of their son. Schmidt suspected Bermudez of abusing the child, so she refused to let him visit. Bermudez filed a petition...

Answered: 1 week ago

Question

★★★★★

How should adjustments for population changes be included before using GDP figures as a measure of economic progress?

Answered: 1 week ago

Question

★★★★★

Zehra was planning to set up a business where she would purchase paintings for $1000 per unit and sell them for $1600 per unit. She wanted to conduct a break-even analysis and identified the...

Answered: 1 week ago

Question

★★★★★

Were the various different cultural groups involved in planning, implementing, and reviewing the data collection instruments? In the results?

Answered: 1 week ago

Question

★★★★★

The following data represent the miles per gallon of a random sample of SMART cars with a three-cylinder, 1.0-liter engine. (a) Compute the z-score corresponding to the individual who obtained 36.3...

Answered: 1 week ago

Question

★★★★★

Note: SS is the status of the scholarship and CSS is the scholarship status of the candidate (eligible or not). QI] Draw a use case diagram for TSS. Q2] Draw a class diagram, describing each class by...

Answered: 1 week ago

Question

★★★★★

For Simonsen Village, prepare a government-wide statement of net position and statement of activities, and a governmental funds balance sheet and statement of revenues, expenditures, and changes in...

Answered: 1 week ago

Question

★★★★★

Which of the following statements is true about other revenue? a.Other revenue is the difference between the actual customer refunds and the estimated customer refunds during a year. b.Other revenue...

Answered: 1 week ago

Question

★★★★★

2. The table below provides you with the 'Inventory turnover ratio' and 'receivable turnover ratio' of two auto-parts manufacturing firms (Firm A and Firm B). Also provided is the average values of...

Answered: 1 week ago

Question

★★★★★

Grandfield College. The law requires that any business, including a school, track its software. It is important to know what software the school owns, in what versions, and what the license agreement...

Answered: 1 week ago

Question

★★★★★

Does States and local governments, including local health care facilities, receive sufficient funding to adequately plan and prepare for a Weapon of Mass Destruction incident?

Answered: 1 week ago

Question

★★★★★

Before you start modeling: What are two questions you would ask to ensure the modeling process starts on task? What is your purpose for asking each of them?

Answered: 1 week ago

Question

★★★★★

Local Private Government Sector Federal Government State, Tribal, Territorial, and Insular Area Communities Nongovernmental Organizations Government Individuals, Families, and Households Whole...

Answered: 1 week ago

Question

★★★★★

Device drive (Linux) /****** Makefile ******/ KERNELDIR=/lib/modules/`uname -r`/build #Change the names here to your file name MODULES = helloWorld.ko obj-m += helloWorld.o all: make -C $(KERNELDIR)...

Answered: 1 week ago

Question

★★★★★

Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?

Answered: 1 week ago

Question

★★★★★

While Steve Bouchard was a student at the University of Florida, he borrowed $12,000 in student loans at an annual interest rate of 9 percent. If Steve repays $1,500 per year, how long, to the...

Answered: 1 week ago

Question

★★★★★

Suppose that todays Wall Street Journal reports the yield on Treasury bills maturing in 30 days is 3.5 percent, the yield on Treasury bonds maturing in 10 years is 6.5 percent, and the yield on a...

Answered: 1 week ago

Question

★★★★★

Compared to the ownership structure of U.S. firms, which are open companies, what are some advantages of the ownership structure of foreign firms, many ofwhich are closed companies? Can you think of...

Answered: 1 week ago

Question

★★★★★

Johnson Wholesale Company manufactures a variety of products. The prices and quantities produced for April 2000 and April 2013 are: Using April 2000 as the base period, find the value index of goods...

Answered: 1 week ago

Question

★★★★★

Using the period 200002 as the base period compute a simple index of international sales for each year from 2003 to2012.

Answered: 1 week ago

Question

★★★★★

Compute Laspeyres price index for 2013 using 2000 as the baseperiod.

Answered: 1 week ago

Previous Question Next Question