1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
monitta
3 years ago
15

You have a portfolio that is equally invested in Stock F with a beta of 1.08, Stock G with a beta of 1.45, and the market. What

is the beta of your portfolio
Business
1 answer:
Aliun [14]3 years ago
5 0

Answer:

1.265

Explanation:

According to the situation, the solution of the beta of portfolio is as follows

Beta portfolio = (weightage of investment F × beta F) + (proportion of investment G ×beta G)

Beta protfolio =  (0.5 × 1.08) + (0.5 × 1.45)

= 0.54 + 0.725

= 1.265

Hence, the beta of your portfolio is 1.265  by applying the above formula

You might be interested in
Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respect
Vaselesa [24]

Answer:

eydhhdhdmdhdhejeidhhdhsgwnwhwgsshsguwbsfdydnegyrhdhr

3 0
2 years ago
I am bad as worst and worst as excellent​
ArbitrLikvidat [17]

Answer:

try using Googlde like Googdle will help u ndo neefsd to do it hedre

7 0
2 years ago
Bagels and cream cheese are complementary goods. The price of flour, used to make bagels, has fallen. As a result, the equilibri
statuscvo [17]

Answer: When the price of the flour falls, the equilibrium price of the cream rises and the equilibrium quantity of the cream cheese also rises

Answer A is correct

Explanation:

if flour is cheaper, bagels are chepear so demand increases and both equilbrium price and equilibrium quantity rises

8 0
3 years ago
The common stock of Jensen Shipping has an expected return of 16.2 percent. The return on the market is 11.2 percent, the inflat
tankabanditka [31]

Answer: 1.66

Explanation:

Based on the information given in the question, the beta of the stock will be calculated as follows:

Expected return = 16.2%

Market return = 11.2%

Inflation rate = 3.1%

Risk-free rate of return = 3.6%

We should note that:

Expected return = risk-free rate + Beta × (market rate- risk-free rate)

Therefore,

16.2% = 3.6% + Beta × (11.2% - 3.6%)

16.2% = 3.6% + Beta × 7.6%

16.2% - 3.6% = Beta × 7.6%

12.6% = Beta × 7.6%

Beta = 12.6% / 7.6%

Beta = 1.66

4 0
3 years ago
Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calcula
Assoli18 [71]

Answer:

The answer is option (c)$89,301

Explanation:

Solution

Given that:

Inflation rate = 2%

The expected value of an investment = 82,500

Now,

nominal terminal value of the investment at the end of year 4.

Thus,

The nominal terminal value rate at the end of year four is given as follows:

= 82, 500 * (1 +2%) ^4

=$89300. 65

= $89,301

3 0
3 years ago
Other questions:
  • After a decision has been rendered in a class,neither party may file an appeal? true or false
    14·1 answer
  • Jimmy knows that to pass the fitness test he needs to be able to run 5 kilometers in 35 minutes. His pace monitor measures in mi
    9·2 answers
  • The largest expenditure component of gdp is:
    12·1 answer
  • On January 1, 2015, VITO Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation
    14·1 answer
  • In 2020, Miranda records net earnings from self-employment of $158,500. She has no other gross income. Determine the amount of M
    13·1 answer
  • A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in th
    11·1 answer
  • Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory accou
    9·1 answer
  • On August 22, Year 4, Martha purchases a computer to use in her childcare business. She sells the computer on December 28, Year
    13·1 answer
  • At the end of the current year, Accounts Receivable has a balance of $825,000; Allowance for Doubtful Accounts has a credit bala
    15·1 answer
  • compute the expected return given these three economic states, their likelihoods, and the potential returns: fast growth state h
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!