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

Question

1 Approved Answer

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.37, and the

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.37, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

Behavioral Finance And Investor Types

Behavioral Finance And Investor Types

Authors: Michael M. Pompian

1st Edition

1118011503, 978-1118011508

More Books

Students also viewed these Finance questions

Question

★★★★★
Assume that the following quote for the Advanced Business Machines stock (traded on the NYSE) was found in the Thursday, December 14, issue of the Wall Street Journal. Given this information, answer...

Answered: 1 week ago

Question

★★★★★
Write the formulas for the following compounds: (a) Rubidium nitrite, (b) Potassium sulfide, (c) Sodium hydrogen sulfide, (d) Magnesium phosphate, (e) Calcium hydrogen phosphate, (f) Potassium...

Answered: 1 week ago

Question

★★★★★
60 When is it advantageous to use a randomized block design over a completely randomized design?

Answered: 1 week ago

Question

★★★★★
An auditor was sued for and found guilty of ordinary negligence. Required For each of the following situations, indicate the likelihood the plaintiff would win if the plaintiff is: a. A financial...

Answered: 1 week ago

Question

★★★★★
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.37, and the total portfolio is exactly as risky as the market, what must the beta be for...

Answered: 1 week ago

Question

★★★★★
The weekly demand for a product is 770 units. The standard deviation of daily demand is 10 units. The firm reviews its inventory every 28 days. Each order for the product arrives 9 days after...

Answered: 1 week ago

Question

★★★★★
Bethany got a call yesterday from First Bank, the company that issued her credit card, inquiring about an $ 1 0 5 . 0 0 charge made in Jamaica. Upon learning that Bethany was at home in Minnesota and...

Answered: 1 week ago

Question

★★★★★
Arya earns $17.20 per hour and works 80.0 regular hours per bi-weekly pay period. In addition, Arya worked 8.5 overtime hours this pay period, which are paid at 1.5 times her regular hourly rate. She...

Answered: 1 week ago

Question

★★★★★
Use the ML Practitioner Assessment project to answer this question. Which two of the following statements about the "grade" column in the schools_data dataset are true? It has a mean of 10.56 and a...

Answered: 1 week ago

Question

★★★★★
= CPPREP4104 Establish buyer re lationships -NSW ? Item 10 of 13 You have received two (2) first home buyer enquiries via email - they have both filled out a buyer profile. Open and read through...

Answered: 1 week ago

Question

★★★★★
Use the ML Practitioner Assessment project to answer this question. Classification models establish a certain probability as a threshold. In the Evaluate recipe, if the model assigns a probability to...

Answered: 1 week ago

Question

★★★★★
Reword the following logical explanations for a negative message so that each has positive rather than negative words and tone. Consider what can be done rather than what cannot. Add necessary...

Answered: 1 week ago

Question

★★★★★
Global. Interview a person who is a native of another country to learn how negative messages would be conveyed in his or her homeland. (Objectives 3, 4, 5, and 6)

Answered: 1 week ago

Question

★★★★★
You own a 300-acre farm outside the city. Jack Ripsaw runs a local sawmill and has requested that you let him cut pulpwood from your farm and split the profit 50-50. Mr. Ripsaws reputation for...

Answered: 1 week ago

Previous Question Next Question