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

Question

1 Approved Answer

you have a $13000 portofolio which is invested in stock A and B and a risk free asset . $ 6000 is invested in stock

you have a $13000 portofolio which is invested in stock A and B and a risk free asset . $ 6000 is invested in stock A.Stock A has a beta of 1.75 and stock B has a beta of .89 how much needs to be invested in stock B if you want a portfolio Beta of 1.20 ?

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

Introduction To Estimating Economic Models

Introduction To Estimating Economic Models

Authors: Atsushi Maki

1st Edition

0415589878, 978-0415589871

More Books

Students also viewed these Finance questions

Question

★★★★★
Find Ct in the network in Figure P5.50 if (a) the switch is open and (b) the switch is closed. HF 12 Figure P5. 5t0

Answered: 1 week ago

Question

★★★★★
Evaluate the expression. (5 3:)(V16 2') (

Answered: 1 week ago

Question

★★★★★
The following problem arises in molecular biology. The surface of a bacterium consists of several sites at which foreign moleculessome acceptable and some notbecome attached. We consider a particular...

Answered: 1 week ago

Question

★★★★★
Tracy, Inc., estimates that next years results will be: Sales revenue (75,000 units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 900,000 Less variable costs ....

Answered: 1 week ago

Question

★★★★★
Fill up the information in the below case when the FRAME sends from PC to Web Server, as it leaves the PC. (2.5 Marks) PC IP: 192.168.10.1 MAC: 11-22-11-AB-AC-10 Web Server IP: 192.168.10.2 MAC:...

Answered: 1 week ago

Question

★★★★★
An electric heater carries a current of 17.5 A when operating at a voltage of 2.40 10 2 V. What is the resistance of the heater?

Answered: 1 week ago

Question

★★★★★
Question 1 Title: Evaluate/Asses Ford South Africa Motor Company's Corporate Social Investment Strategy/Plan over the last 5 years. Who were the beneficiaries? How did they benefit? How successful...

Answered: 1 week ago

Question

★★★★★
Mawar manufacturing provides photocopy machines. Each time the machines breakdown, the company estimates that it loses an average of RM 500 in time and service expenses. One of the alternatives in...

Answered: 1 week ago

Question

★★★★★
WHAT TO EXPECT THIS WEEK How might Ethelo achieve greater financial sustainability with their climate focused products and services when serving smaller municipalities? Section 1-Define the business...

Answered: 1 week ago

Question

★★★★★
Capturing Good Memories During the Pandemic The Pandemic has been affecting the entire world for more than two years now. Despite the government's recently relaxed rules, most industries still have...

Answered: 1 week ago

Question

★★★★★
Describe Samsung Electronics' Internal Quality Management Program. What are the key components? Provide an assessment of Samsung Electronics' Internal Quality Management Program. Does the plan appear...

Answered: 1 week ago

Question

★★★★★
In the Hewlett-Packard research, discuss what options the company has if it moves away from the performance pay scheme it has previously operated.

Answered: 1 week ago

Question

★★★★★
Look up the article that is the basis for focus on research 6.1. Why do you think that some of the respondents consider that their reward strategy does not operate in practice?

Answered: 1 week ago

Question

★★★★★
In case study 6.2, what would happen if business turned down and the company made little or no gains over a pay period?

Answered: 1 week ago

Previous Question Next Question