Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

Stock A has a beta of 1.4. Stock B has a beta of 0.8. The beta of a portfolio with 40%A and 60%B is 1.32

Stock A has a beta of 1.4. Stock B has a beta of 0.8. The beta of a portfolio with 40%A and 60%B is 1.32 1.16 1.04 Impossible to determine without knowing the correlation between returns for A and B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

Stock dividend declared should be treated as a. Income b. Increase in the value of original shares held c. Increase to the quantity (position) of shares held d. All of the above

Answered: 1 week ago

Question

★★★★★

The weekly demand for a product is believed to be normally distributed. Use a goodness of fit test and the following data to test this assumption. Use = .10. The sample mean is 24.5 and the sample...

Answered: 1 week ago

Question

★★★★★

1. What is the average shipping cost on sales made in the month of June? Name the column AverageShipping. Also use the Round function to two decimal places for currency, i.e. round ( ... , 2) .

Answered: 1 week ago

Question

★★★★★

How does this positively or negatively impact consumer perception of the brand? Do you think retailers should be open on Black Friday? Why/why not?

Answered: 1 week ago

Question

★★★★★

Figure P.13.3 shows the flight envelope at sea-level for an aircraft with a wing span of 27.5m, average wing chord 3.05m, and total weight 196kN. The aerodynamic center is 0.915 m forward of the...

Answered: 1 week ago

Question

★★★★★

4. You elect extended repayment of your student loan and must pay $474.80/month. Your interest rate is 4.06%. Correct to the nearest dollar, how much did you borrow? 5. How much would you save, in...

Answered: 1 week ago

Question

★★★★★

Data and data analysis form important parts within the Lean Six Sigma (LSS) framework. Within a LSS project, what are data and data analysis not used for? 1)Diagnose the current process. 2) Find the...

Answered: 1 week ago

Question

★★★★★

Dan owned a farm. Most of his products are being supplied to different restaurants. Products include cow's milk, chicken egg, meat (chicken, pork, and beef). On the side, they also sell carrots,...

Answered: 1 week ago

Question

★★★★★

Task 1: A. Describe the operation of the following thermodynamic systems and their properties: (i) System (ii) Surroundings (iii) Open System (iv) Close System (v) Isolated System B. A large fraction...

Answered: 1 week ago

Previous Question Next Question