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

Question

1 Approved Answer

You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in

You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70? (Do not round intermediate calculations and round your answer to 2 decimal places.)


New portfolio beta

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_2

Step: 3

blur-text-image_3

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

Personal Financial Planning

Personal Financial Planning

Authors: Lewis J. Altfest

2nd edition

1259277186, 978-1259277184

More Books

Students also viewed these Finance questions

Question

★★★★★
Determine the plastic modulus Z and shape factor f for a W 12 x 14 wide-flange beam.

Answered: 1 week ago

Question

★★★★★
You are an auditor who has conducted a review of your client, whose balance sheet information included: As originally stated Total Current assets 20,936 Total Assets 22,958 Total Current Liabilities...

Answered: 1 week ago

Question

★★★★★
what advertising is supposed to do

Answered: 1 week ago

Question

★★★★★
JoKatherine Page and her 14-year-old son Jason were robbed at their banks ATM at 9:30 P.M. one evening by a group of four thugs. The thieves took $300, struck Mrs. Page in the face with a gun, and...

Answered: 1 week ago

Question

★★★★★
You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70? (Do not round...

Answered: 1 week ago

Question

★★★★★
g: net income, $124.000 and depreciati pany's curent assets and current liabilities showed the follow s receivable decreased $9,400: merchandise inventory in provided or used by opera $18,000, and...

Answered: 1 week ago

Question

★★★★★
HELP! Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for year 2019, what is his...

Answered: 1 week ago

Question

★★★★★
PAMPA RV, INC. Evaluation of an Investment Opportunity Pampa RV, Inc., a publicly traded firm, is considering the acquisition of Chico Clothing Company (CCC) for a price of $12 per share. CCC is a...

Answered: 1 week ago

Question

★★★★★
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 61,500 $ 32,400 $...

Answered: 1 week ago

Question

★★★★★
Kaiser Corporation is a diversified manufacturer of sporting goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labour related Machine...

Answered: 1 week ago

Question

★★★★★
Down Under Products' sales budget for the next four months is as follows: Unit Sales April 80,000 May June July 90,000 120,000 95,000 The company wants its ending Inventory levels to equal 10% of the...

Answered: 1 week ago

Previous Question Next Question