Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

Suppose you invest $3000 in Colgate-Palmolive (CL), which has a beta of 0.52, and you invest another $7000 into Fedex Corp (FDX), which has a

Suppose you invest $3000 in Colgate-Palmolive (CL), which has a beta of 0.52, and you invest another $7000 into Fedex Corp (FDX), which has a beta of 1.43. If that is your entire portfolio, what is the portfolios beta? Answers: A. 0.793 B. 0.975 C. None of these D. 1.95 CorrectE. 1.157

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

Explain the philosophical assumptions of this approach, along with the methodological implications of those assumptions.

Answered: 1 week ago

Question

★★★★★

Hurricane Inc. purchased a portfolio of available-for-sale securities in 2014, its first year of operations. The cost and fair value of this portfolio on December 31, 2014, was as follows: On June...

Answered: 1 week ago

Question

★★★★★

Your answer is partially corred. Try again. CALCULATOS PRINTER VERSION RACK NEXT During 2022, Indigo Corporation entered into the following transactions 1. Borrowed $59,500 by issuing bonds. 2. Paid...

Answered: 1 week ago

Question

★★★★★

Using the following random-order accounts and balances, develop a balance sheet in the correct format for the Clinic. Utilities payable 7,000 Equipment 145,000 Other long term debts 37,000 Other long...

Answered: 1 week ago

Question

★★★★★

2 Physics 20: SUMMER Assignment 3 3. Later that day, the goose is considering visiting one of three wetlands, A, B, or C. If there is a wind velocity as shown, sketch the vector diagrams for the...

Answered: 1 week ago

Question

★★★★★

Answer the following questions: 1) How much oil is the U.S. Strategic Petroleum Reserve? For how much time could the reserve supply the oil we're now importing from other countries? 2) Research...

Answered: 1 week ago

Question

★★★★★

Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.6 pounds of the material, Ike uses 2.1 pounds of the material, and Bix uses 6 pounds of...

Answered: 1 week ago

Question

★★★★★

4. Tim Hortons and Starbucks are in a price competition. Both can choose either a low price (Defect) or a high price (Cooperate), and their choices are made simultaneously. The reward payoff when...

Answered: 1 week ago

Question

★★★★★

Supplier selection is now a global concern, with competition coming from countries all over the world. Circumstances like hurricanes, earthquakes, and tsunamis have a negative impact on the movement...

Answered: 1 week ago

Previous Question Next Question