Homework Answers
| stock | amount | weight | beta | weight* beta |
| olympic steel | 33,200 | (33,200/66,400)=>0.50 | 2.90 | 1.45 |
| rent a center | 24,568 | (24,568/66,400)=>0.37 | 1.93 | 0.7141 |
| Lincoln educational | 8,632 | (8,632/66,400)=>0.13 | 0.98 | 0.1274 |
| 66,400 | portfolio beta | 2.29 |
Add Answer to:
Check my work You own $33,200 of Olympic Steel stock that has a beta of 2.90....
You own $14,760 of Denny’s Corp stock that has an assumed beta of 2.90. You also...
You own $14,760 of Denny’s Corp stock that has an assumed beta of 2.90. You also own $29,028 of Qwest Communications (assumed beta = 1.50) and $5,412 of Southwest Airlines (assumed beta = 1.08). Assume that the market return will be 11.0 percent and the risk-free rate is 6.0 percent. What is the market risk premium? What is the risk premium of each stock? (Round your answers to 2 decimal places.) What is the risk premium...
You own $17,290 of Opsware, Inc. stock that has a beta of 3.61. You also own...
You own $17,290 of Opsware, Inc. stock that has a beta of 3.61. You also own $20,020 of Lowe’s Companies (beta = 1.62) and $8,190 of New York Times (beta = 1.16). Assume that the market return will be 15 percent and the risk-free rate is 6 percent. What is the market risk premium? What is the risk premium of each stock? (Round your answers to 2 decimal places.) What is the risk premium of the portfolio? (Do not round...
Check my work Check My Work button is now enabledItem 5Item 5 10 points You own...
Check my work Check My Work button is now enabledItem 5Item 5 10 points You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .78, .87, 1.13, and 1.45, respectively. What is the portfolio beta?
Check my work Assume that you own 50 shares of common stock of a company, that...
Check my work Assume that you own 50 shares of common stock of a company, that you have been receiving cash dividends of $4 per share per year, and that the company has a 3-for-2 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do not round intermediate calculations....
Save Submit Assignment for Grading uestions Problem 8.02 2 of 11 Check My Work O 8-3:...
Save Submit Assignment for Grading uestions Problem 8.02 2 of 11 Check My Work O 8-3: Risk in a Portfolio Context: The CAPM Portfolio beta An individual has $45,000 invested in a stock with a beta of 0.7 and another $55,000 invested in a Ostock with a beta of 2.1. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places. Check My Work
Check My Work (2 remaining) 8-3: Risk in a Portfolio Context: The CAPM 8-4: The Relationship...
Check My Work (2 remaining) 8-3: Risk in a Portfolio Context: The CAPM 8-4: The Relationship Between Risk and Rates of Return CAPM and portfolio return You have been managing a $5 million portfolio that has a beta of 1.70 and a required rate of return of 14%. The current risk-free rate is 3.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on...
Save Submit Assignment for Grading Question of 10 Check My Work (1 remaining) Problem Walk-Through Problem 8-7 Beta...
Save Submit Assignment for Grading Question of 10 Check My Work (1 remaining) Problem Walk-Through Problem 8-7 Beta Portfolio required return Suppose you are the money manager of a $3.67 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment $ 300,000 400,000 0.50 1,220,000 1,750,000 If the market's required rate of return is 12% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate...
You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R,...
You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 25 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 1.6, 0.6,1.7, and 0.8, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Portfolio beta
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R,...
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .83, 1.21, 1.22, and 1.39, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta A stock has an expected return of 12.4 percent, the risk-free rate is 4.5 percent, and the market...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 126 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places leg.32.16).) Beta: QUESTION 18 A stock has a beta of o92, the expected return on the market is 103 percent, and the risk-free rate is...
Check my work Assume that you own 50 shares of common stock of a company, that you have been receiving cash dividends of $4 per share per year, and that the company has a 3-for-2 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? (Do not round intermediate calculations....
Save Submit Assignment for Grading uestions Problem 8.02 2 of 11 Check My Work O 8-3: Risk in a Portfolio Context: The CAPM Portfolio beta An individual has $45,000 invested in a stock with a beta of 0.7 and another $55,000 invested in a Ostock with a beta of 2.1. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places. Check My Work
Check My Work (2 remaining) 8-3: Risk in a Portfolio Context: The CAPM 8-4: The Relationship Between Risk and Rates of Return CAPM and portfolio return You have been managing a $5 million portfolio that has a beta of 1.70 and a required rate of return of 14%. The current risk-free rate is 3.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on...
Save Submit Assignment for Grading Question of 10 Check My Work (1 remaining) Problem Walk-Through Problem 8-7 Beta Portfolio required return Suppose you are the money manager of a $3.67 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment $ 300,000 400,000 0.50 1,220,000 1,750,000 If the market's required rate of return is 12% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate...
You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 25 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 1.6, 0.6,1.7, and 0.8, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Portfolio beta
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .83, 1.21, 1.22, and 1.39, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Portfolio beta A stock has an expected return of 12.4 percent, the risk-free rate is 4.5 percent, and the market...
QUESTION 17 You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 126 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places leg.32.16).) Beta: QUESTION 18 A stock has a beta of o92, the expected return on the market is 103 percent, and the risk-free rate is...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 2 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 2 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 2 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 2 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 2 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 2 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 2 hours ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 3 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 2 hours ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 3 hours ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 3 hours ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 3 hours ago