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

Question

1 Approved Answer

You have a portfolio that is invested 35% in Stock A, 40% in Stock B, and the remainder in Stock C. The beta of Stock

image text in transcribed
You have a portfolio that is invested 35% in Stock A, 40% in Stock B, and the remainder in Stock C. The beta of Stock A is 0.8 . and the beta of Stock B is 1.2 . The beta of your portfolio is 1,3 . What is the beta of the Stock C ? 0.87 1.93 2.32 1.22

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

Dollars And Sense How We Misthink Money And How To Spend Smarter

Dollars And Sense How We Misthink Money And How To Spend Smarter

Authors: Dr. Dan Ariely , Jeff Kreisler

1st Edition

0062651218,0062651226

More Books

Students also viewed these Finance questions

Question

★★★★★
The trial balance of Racer Internet at March 31, 2012, follows: Adjustment data at March, 31, 2012 a. Unearned service revenue still unearned, $500. b. Prepaid rent still in force, $2,000. c....

Answered: 1 week ago

Question

★★★★★
WACC & Capital Budget Analysis Based on the inputs below prepare a capital budget analysis for this Base Case using the Net Present Value, Internal Rate of Return, Profitability Index and Payback in...

Answered: 1 week ago

Question

★★★★★
7-14. We wanted to invite you to our special 40 percent off byinvitation-only sale. The sale is taking place on November 9.

Answered: 1 week ago

Question

★★★★★
1. Create a service blueprint of the refinancing process. Why do you think the bank organized its process this way? What problems have ensued? 2. Examine the process carefully. Look at customer/...

Answered: 1 week ago

Question

★★★★★
According to the answer, the formula used is indirect quotes [(Forward - Spot) / Spot * 360/day *100 =?%], but why it cannot be direct quotes [(Spot - Forward) / Forward *360/days * 100 = %] in this...

Answered: 1 week ago

Question

★★★★★
Agency costs of debt are treated as financial distress costs because they typically intensify during periods of financial distress Managers may be inclined to pursue value-destroying acquisitions to...

Answered: 1 week ago

Question

★★★★★
3. Since the length of a downhill ski is related to the height of the individuals renting them, it is fair to assume that a normal distribution would describe the length of women's skis at rental...

Answered: 1 week ago

Question

★★★★★
General wellbeing administrations in the United States are profoundly divided and are financed by a mind boggling combination of government, state, neighborhood, and private sources that differ...

Answered: 1 week ago

Question

★★★★★
Exercise 5: A team of IT security specialists analyzed the frequency of cyber attacks on a university's network on a given day and were able to model the average number of attacks A(t) per hour at...

Answered: 1 week ago

Question

★★★★★
2) The local five-star restaurant asks its patrons to fill out a quick satisfaction survey (is the patron satisfied or not) after their meal, and the restaurant claims that their satisfaction rating...

Answered: 1 week ago

Question

★★★★★
The following problem information is to be used for problems 5 through 11. Suppose that a company was trying to relate the number of units ordered to the offered price of the product. The computer...

Answered: 1 week ago

Question

★★★★★
At 50 per box, our std. contract forms are $9 a box, and our warranty forms are $7.95 a box.

Answered: 1 week ago

Question

★★★★★
Whenever you can come, professor, our employees will greatly enjoy your presentation.

Answered: 1 week ago

Question

★★★★★
She received her master of business administration degree from the university of michigan.

Answered: 1 week ago

Previous Question Next Question