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

Question

1 Approved Answer

Justin invests in Stock X that has a beta of 0.7 and an Index Fund Y. Index Fund Y replicates the market portfolio. Justins portfolio

Justin invests in Stock X that has a beta of 0.7 and an Index Fund Y. Index Fund Y replicates the market portfolio. Justins portfolio that consists of Stock X and Index Fund Y has a beta of 0.9. His total portfolio investment is $42000. What is the dollar amount of Index Fund Y in Justins portfolio?

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_2

Step: 3

blur-text-image_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

Handbook Of Blockchain Digital Finance And Inclusion

Handbook Of Blockchain Digital Finance And Inclusion

Authors: David Lee, Robert H. Deng

1st Edition

012812282X, 978-0128122822

More Books

Students also viewed these Finance questions

Question

★★★★★
For the simple pipe networks shown in Figure P14 -7, determine the pressures at nodes 1, 2, and 3 and the volumetric flow rates through the branches. Assume the pressure at node 4 is zero. In network...

Answered: 1 week ago

Question

★★★★★
12. ROLE REVERSAL: Write a multiple-choice question that raises the issue of an instrument's negotiability.

Answered: 1 week ago

Question

★★★★★
What is intergroup anxiety? What causes it? Explain the process by which intergroup anxiety leads to prejudice.

Answered: 1 week ago

Question

★★★★★
As of December 31, 2013, Post Company had total cash of $156,000, notes payable of $85,600, and common stock of $52,400. During 2014, Post earned $36,000 of cash revenue, paid $20,000 for cash...

Answered: 1 week ago

Question

★★★★★
Justin invests in Stock X that has a beta of 0.7 and an Index Fund Y. Index Fund Y replicates the market portfolio. Justins portfolio that consists of Stock X and Index Fund Y has a beta of 0.9. His...

Answered: 1 week ago

Question

★★★★★
During 2020, Seth Britain Lab supplied hospitals with acomprehensive diagnostic kit for $120. At a volume of 85,000 kits,Seth had fixed costs of $1,130,000 and a profit before income taxesof $145,0 2...

Answered: 1 week ago

Question

★★★★★
Indicate whether each of the following expenditure items should be classified as a function (F), organization unit (OU), activity (A), character (C), or object (O). Answer is complete and correct....

Answered: 1 week ago

Question

★★★★★
You recently attended an industry conference. While there, you met up with a friend Roni, who works for a competitor. During a break, Roni implies that if you could get your company to charge for a...

Answered: 1 week ago

Question

★★★★★
Consider a firm with an EBITDA of $1,100,000 and an EBIT of $1,000,000. The firm finances its assets with $4,550,000 debt (costing 8.3 percent, all of which is tax deductible) and 203,000 shares of...

Answered: 1 week ago

Question

★★★★★
Control: On a monthly basis, the financial analyst performs the reconciliation of the AR subledger system to the general ledger. All reconciling items in excess of US$15,000 are investigated and...

Answered: 1 week ago

Question

★★★★★
TB Problem Qu. 9-402 (Static) Hislop Tech is a for-profit vocational... Hislop Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers),...

Answered: 1 week ago

Question

★★★★★
Identify the ways language works to help people communicate the five functional communication competencies

Answered: 1 week ago

Question

★★★★★
The Functions of Language Problems with Language

Answered: 1 week ago

Question

★★★★★
The Nature of Language

Answered: 1 week ago

Previous Question Next Question