The following common stocks are available for investment: COMMON STOCK (Ticker Symbol) BETA Nanyang Business Systems (NBS).1.40

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The following common stocks are available for investment:
COMMON STOCK (Ticker Symbol) BETA
Nanyang Business Systems (NBS)……………….1.40
Yunnan Garden Supply, Inc. (YUWHO)…………0.80
Bird Nest Soups Company (SLURP) …………….0.60
Wacho.com! (WACHO) ………………………….1.80
Park City Cola Company (BURP)…………………1.05
Oldies Records, Ltd. (SHABOOM)……………….0.90
a. If you invest 20 percent of your funds in each of the first four securities, and 10 percent in each of the last two what is the beta of you.' portfolio?
b.
If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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