An investor owns 1,000 shares of BXO shares and 500 shares of MBA stock. BXO shares...
An investor owns 1,000 shares of BXO shares and 500 shares of MBA stock. BXO shares are currently selling for $23 each and have a beta of 1.4. MBA shares are currently selling for $55 each and have a beta of 1.2. What is the beta of the portfolio of shares owned by this investor?
____
A) 1.20
B) 1.23
C) 1.29
D) 1.33
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An investor owns 1,000 shares of BXO
shares and 500 shares of MBA stock. BXO shares...
need help with practice question An investor owns 500 shares of ABC corp. currently trading at...
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
Investor A owns 1,000 shares of XYZ stock. Investor A buys 10 call options on XYZ...
Investor A owns 1,000 shares of XYZ stock. Investor A buys 10 call options on XYZ stock. Investor B also owns 1,000 shares of XYZ stock and sells 10 call options on XYZ stock. A’s basis in his shares is $20,000 and B’s basis in her shares is $12,000. Both A and B owned their shares for 5 years prior to entering into any of the option transactions. A exercises his options and B is assigned on her options. Both...
An investor owns 300 shares of stock currently selling for $70 per share. After a 3-for-2...
An investor owns 300 shares of stock currently selling for $70 per share. After a 3-for-2 stock split, the investor will have: Multiple Choice 200 shares selling for $93.10 each. 200 shares selling for $105.00 each. 450 shares selling for $46.67 each. 450 shares selling for $93.10 each.
1.An investor purchased 500 shares of Akley common stock for $42,000 in a margin account and...
1.An investor purchased 500 shares of Akley common stock for $42,000 in a margin account and posted initial margin of 50%. The maintenance margin requirement is 30%. The price of Akley, below which the investor would get a margin call, is closet to: a. 50 b. 55 c. 65 d. 60 2.Active management: a. can outperform a passive strategy if markets are semi-strong form efficient b. can outperform a passive strategy if markets are strong-work efficient. c. cannot outperform a...
An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta...
An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta = 1.3 15,000 shares of Stock B $48,000 Beta = 1.8 25,000 shares of Stock C $96,000 Beta = 2.2 If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is A. 14.91%. B. 23.93%. C. 21.91%. D. 15.93%.
QUESTION 16 An investor currently holds the following portfolio: 8,000 shares of Stock A 15,000 shares...
QUESTION 16 An investor currently holds the following portfolio: 8,000 shares of Stock A 15,000 shares of Stock B 25,000 shares of Stock C Amount Invested $16,000 $48,000 $96,000 Beta - 1.3 Beta - 1.8 Beta - 22 If the risk-free rate of return is 2% and the market risk premium is 7%, then the required 23.93% 14.91%. 21.91%. 15.93%.
1.2 On July 1, an investor holds 5,000 shares of a certain stock. The market price...
1.2 On July 1, an investor holds 5,000 shares of a certain stock. The market price is $30 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the September Mini 500 S&P 500 futures contract. The index futures price is currently 1,504 and one contract is for delivery of $50 times the index. The beta of the stock is 0.95. What strategy should the investor use? Under what...
An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,100....
An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,100. ABC declares a 10% stock dividend. After the dividend is paid, John owns____________ 1000 shares with a market value of $1,000. 1000 shares with a market value of $1,100. 1100 shares with a market value of $1,100. 1100 shares with a market value of $1,000.
QUE 1a) An investor owns some stock in Harry’s pottery Inc. The stock recently underwent a...
QUE 1a) An investor owns some stock in Harry’s pottery Inc. The stock recently underwent a 5-for -3 stock split . if the stock was trading at $40 per share just before the split, how much is each share most likely selling for after the split? if investor owned 200 shares of stock before the split, how many shares would she own afterward? b) Ron’s Rodents Co. has total assets of $5 million, total short and long – term...
On July 1, an investor holds 50,000 shares of a certain stock. The market price is...
On July 1, an investor holds 50,000 shares of a certain stock. The market price is 30 per share. The investor is interested in hedging against movements in the market over the next 2 months and decides to use an October stock index futures contract. The index level is currently 740 and one contract is for delivery of 500 times the index. The current three month futures price is 750. The current interest rate is 6% per annum and the...
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
QUESTION 16 An investor currently holds the following portfolio: 8,000 shares of Stock A 15,000 shares of Stock B 25,000 shares of Stock C Amount Invested $16,000 $48,000 $96,000 Beta - 1.3 Beta - 1.8 Beta - 22 If the risk-free rate of return is 2% and the market risk premium is 7%, then the required 23.93% 14.91%. 21.91%. 15.93%.
1.2 On July 1, an investor holds 5,000 shares of a certain stock. The market price is $30 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the September Mini 500 S&P 500 futures contract. The index futures price is currently 1,504 and one contract is for delivery of $50 times the index. The beta of the stock is 0.95. What strategy should the investor use? Under what...
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