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

Question

1 Approved Answer

UPS, a delivery services company, has a beta of 1.4 , and Wal-Mart has a beta of 0.8 . The risk-free rate of interest is

image text in transcribed
UPS, a delivery services company, has a beta of 1.4 , and Wal-Mart has a beta of 0.8 . The risk-free rate of interest is 6% and the market risk premium is 9%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal - Mart? A. 15.36% B. 13.82% C. 16.9% D. 14.59%

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

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

Healthcare Finance An Introduction To Accounting And Financial Management

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

5th Edition

1567934250, 978-1567934250

More Books

Students also viewed these Finance questions

Question

★★★★★
Rose purchased units of the Trimark Fund one year ago at $24.10 per unit. Today they are valued at $25.50. On the intervening December 31, there was a distribution of $0.83 per unit. (Distribution is...

Answered: 1 week ago

Question

★★★★★
You get off the Washington, D.C., subway system at the Smithsonian Metro station. First you visit the Museum of Natural History. Then you go to the Air and Space Museum. You record the distances you...

Answered: 1 week ago

Question

★★★★★
Describe three types of learning discussed in the work of Koffka.

Answered: 1 week ago

Question

★★★★★
Theta Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual income is constant over the life of the project. Each project is expected to...

Answered: 1 week ago

Question

★★★★★
Question 2. (3 Marks) The Seif Company had the following trial balance for October 2020: Cash 220,000 Accounts receivable 40,000 Merchandise Inventory 300,000 Accounts payable 120,000 Capital 200,000...

Answered: 1 week ago

Question

★★★★★
246 Payroll Accounting Chapter 7: Comprehensive Projects-Paper-Based Versions One-Month Project NOTE! Templates needed to complete these exercises, including one containing year-to-date payroll data,...

Answered: 1 week ago

Question

★★★★★
SECTION 2 READING STUDY GUIDE Economic Choice Today: Opportunity Cost Before You Learned The economic problem of scarcity guides economists to ask and answer basic questions about the economy. Now...

Answered: 1 week ago

Question

★★★★★
Which of the following statements is not true regarding incremental and iterative development approaches? A) Both incremental and iterative approaches are used in adaptive projects. B) Both...

Answered: 1 week ago

Question

★★★★★
A merchant obtains the retail price of an item by adding 20% to the wholesale price. Later, he has a sale and marks every item down 20% from the retail price. Is the sale price the same as the...

Answered: 1 week ago

Question

★★★★★
One gallon equals 4 quarts. The following program intends to read a floating-point value from input, convert the value from quarts to gallons, and output the volume in gallons, but the code contains...

Answered: 1 week ago

Question

★★★★★
Cash $ 120,000 Accounts receivable 48,000 Maintenance expense 22,000 Advertising expense 17,360 Fees earned 128,800 Lisa Assaad, Capital, April 1 ? Salaries expense 61,000 Machinery 93,000 Accounts...

Answered: 1 week ago

Question

★★★★★
=+2. Can you imagine a world without corporations? What would we lose? What would we gain?

Answered: 1 week ago

Question

★★★★★
=+1. Make the case for the corporation as a force for good in society today.

Answered: 1 week ago

Question

★★★★★
=+3. What are the two main issues with social entrepreneurship? Which do you think is the most dangerous to the case for social entrepreneurship? Why?

Answered: 1 week ago

Previous Question Next Question