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

Question

...
1 Approved Answer

The following table contains information on the beta and expected return for 9 stocks NFLX TSLA DIS PFE PSX XEL TGT SBUX SQ E[r] 9.8%

The following table contains information on the beta and expected return for 9 stocks

NFLX TSLA DIS PFE PSX XEL TGT SBUX SQ
E[r] 9.8% 5.2% 12.5% 7.1% 16.2% 19.2% 15.2% 11.1% 18.1%
Beta 1.47 0.32 0.72 0.42 1.14 0.19 0.62 0.52 3.09

What is the beta on an equally-weighted portfolio of the three lowest beta stocks?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

College Accounting A Contemporary Approach

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

978-0077639730

Students also viewed these Finance questions

Question

A local survey indicated that 81% of shoppers conducted online research before buying. It also found that 30% of shoppers are under the age of 40, and that 20% of shoppers are under the age of 40 and...

Answered: 1 week ago

Question

★★★★★
Reddy Heaters, Inc., produces insert heaters that can be used for various applications, ranging from coffeepots to submarines. Because of the wide variety of insert heaters produced, Reddy uses a...

Answered: 1 week ago

Question

★★★★★
thank u

Answered: 1 week ago

Question

★★★★★
Amazon in OKC has just invested $250,000 in equipment having a negligible salvage value (SV = 0) regardless of when the equipment if replaced. O&M costs equal $50,000 the first year and increase...

Answered: 1 week ago

Question

★★★★★
Employee Stakeholders: Privacy, Health, Wellness, and Safety Enumerate the strengths and weaknesses of integrity test as a management toll for decision making. Under what circumstances could...

Answered: 1 week ago

Question

★★★★★
For the base case in this section, as a percentage of sales, COGS = 70 percent, SGA = 14 percent, R&D = 2.4 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 20 percent. 1.a...

Answered: 1 week ago

Question

★★★★★
I need to know how to set up the following in Excel in order to run a linear programming. I have the add ons to do it. Here is the problem. Please apply Linear Programming to a following business...

Answered: 1 week ago

Question

★★★★★
You are offered a job at Telsat, a major manufacturing company. You have heard the company is notorious for paying the executives large salaries while the wages of the regular workers are very low....

Answered: 1 week ago

Question

★★★★★
Problem: You are the PM of an engineering project made up of 19 activities. As shown below, the project was planned to be completed in 47 weeks, and you were assigned a budget of $990K. Currently,...

Answered: 1 week ago

Question

★★★★★
In a clinical research study, 300 out of 1000 people are hypertensive. What are the odds of hypertension? a. 300 b. 30% c. 51% d. 43%

Answered: 1 week ago

Previous Question Next Question