Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 19, 2024

Stock Proportion in the portfolio Beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5 CNOOC 0.15 1.8 a) Determine the portfolio beta b)

Stock

Proportion in the portfolio

Beta

Gazprom

0.25

1.4

Shell

0.3

1.6

Exxon Mobil

0.3

1.5

CNOOC

0.15

1.8

a) Determine the portfolio beta

b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio?

c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio?

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

Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

8th Canadian Edition

007133887X, 978-0071338875

More Books

Students also viewed these Finance questions

Question

Need help with the 70 multiple choice questions for final exam - if you can, please provide explanation for harder questions. A s ae o . s h r d n. . Surname: ______________________ Q1 Given names:...

Answered: 1 week ago

Question

I need assistance in completing the open ended portion that could be found on the last page of the pdf file. Part A most importantly is what I need assistance with, the data that needs to be...

Answered: 1 week ago

Question

have a question on part B question 1 & 2...

Answered: 1 week ago

Question

★★★★★

Describe the process of testing software developed using both top-down and bottom-up development order. Which method results in the fewest resources required for testing? What types of errors are...

Answered: 1 week ago

Question

★★★★★

What is the available user bandwidth in an OC-12c connection?

Answered: 1 week ago

Question

★★★★★

Calculate the spectrum of the input-referred thermal noise voltage for the op amp in Fig. 12.40 if W/L is doubled for M 1 = M 2 (i.e., m 1 = m 2 = 20). Assume the bias conditions and operating...

Answered: 1 week ago

Question

★★★★★

1. If African American students are more likely to be identified for special education services and placed outside of the general education system than White students. Which one of the following is...

Answered: 1 week ago

Question

★★★★★

At December 31, the end of Chilton Communications third quarter the following stockholders equity accounts are reported: Common stock, $ 10 par value . . . . . . . . . . . . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★

RED Company leased a building and received the P3,600,000 annual rental payment on June 15, 2020. The lease starts on July 1, 2020. Rental income is taxable when received. Enacted tax rates are 30%...

Answered: 1 week ago

Question

★★★★★

can you please help me with this assignment, please show all the work. This is Physics 20 (grade 11) : PROJECT UNIT B Information \\v Hag A roofer is dragging a 15.0-kg bundle of shingles up the roof...

Answered: 1 week ago

Question

★★★★★

we examined fact-finding on the Internet and how a lot of "facts" are actually not substantiated with evidence and essentially untrue! In this assignment we will examine the fact-checking websites:...

Answered: 1 week ago

Question

★★★★★

Trudel Department Store uses a periodic inventory system. The adjusted trial balance of Trudel Department Store at December 31, 2024, follows: TRUDEL DEPARTMENT STORE Adjusted Trial Balance December...

Answered: 1 week ago

Question

★★★★★

A firm repurchases 10 percent of its outstanding common stock. What is the effect of this treasury stock transaction? O The common stock shares will be permanently retired. O Its debt-to-total...

Answered: 1 week ago

Question

★★★★★

You're working with a data source that has all of its data on a single Excel worksheet and its structure has multiple sub-tables. Which is the best way to get this data ready for analysis

Answered: 1 week ago

Question

★★★★★

Nagy Corporation reported the following income statement in 20X1, along with a comparable income statement for 20X0, its first year of operations: Income Statement, 20X1 and 20X0 ($ in millions)...

Answered: 1 week ago

Question

★★★★★

View Policies Current Attempt in Progress The pretax financial income (or loss) figures for Teal Mountain Company are as follows. 2017 2018 77,000 (44,000) (39,000) 131,000 2019 2020 2021 105,000...

Answered: 1 week ago

Question

★★★★★

H.J. Heinzs annual dividends were as follows: 1990 ..............$0.540 1991.............. 0.620 1992 .............. 0.700 1993.............. 0.780 1994 .............. 0.860 1995 .............. 0.940...

Answered: 1 week ago

Question

★★★★★

Refer to the data for 1050 subjects with cerebral edema (CEREBRAL). Cerebral edema with consequent increased intracranial pressure frequently accompanies lesions resulting from head injury and other...

Answered: 1 week ago

Question

★★★★★

Refer to the data for 1050 subjects with essential hypertension (HYPERTEN). Suppose you are a statistical consultant to a medical research team interested in essential hypertension. Select a simple...

Answered: 1 week ago

Question

★★★★★

be able to obtain a multiple regression model and use it to make predictions.

Answered: 1 week ago

Previous Question Next Question