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
Elanso [62]
3 years ago
8

You have $130,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

ed return of 14.6 percent. Stock X has an expected return of 12.8 percent and a beta of 1.30, and Stock Y has an expected return of 7.8 percent and a beta of 1.05. a. How much money will you invest in Stock Y? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) b. What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Business
1 answer:
Finger [1]3 years ago
7 0

Answer:

Let X be the amount invested in stock A

Let 1-X be the amount invested in stock B

Expected rate = (Required rate of X* X) + (Required ratebof Y * (1-X))

0.146 = (0.128 * X) + (0.078 * (1-X))

0.146 = 0.128X + 0.078 -  0.078X

0.146 - 0.078 = 0.128X - 0.078X

X = 0.068/0.05

X = 1.36

Amount to be invested in Stick X = $130,000 * 1.36

= $176,000

Amount to be invested in Stock Y = (1-X) * Available amount

= (1-1.36) * $130,000

= $46,800

Therefore, the amount to be invested in Stick Y = -$46,800

Calculation of the portfolio beta

bp = w1b1 + w2b2 + ........ + wnbn

bp = (1.36*1.3) + ((-0.36) * 1.05)

bp = 1.768 - 0.378

bp = 1.29

Therefore, the portfolio beta is 1.39

You might be interested in
Swift Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small v
VLD [36.1K]

Answer:

Check the explanation

Explanation:

Net Present Value (NPV): It the distinction among the initial cash outflow and the present value of cash inflows. It assists in making project investment conclusion. A positive NPV means that the project should be accepted and if it is on negative swing then it should be rejected. Projects with upper NPV should be accepted in case of two mutually exclusive projects having positive net present value.

Use spreadsheet for the required computations. Enter values and formulas in the spreadsheet as shown in the image below.

7 0
3 years ago
Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________. A. event
Bas_tet [7]

Answer:

a. marketing event

Explanation:

Marketing event -

It refers to the process of marketing , where the goods or services are marketed via some promotional events , is referred to as marketing event .

The method involves organizing and conducting for the promotional purpose .

In this method , there is direct interaction with the representative of the particular brand .

Hence , from the given scenario of the question ,

The correct option is a. marketing event .

7 0
3 years ago
What is the main reason why empathy is important for communication?
wariber [46]

Answer:

it means you can understand what a person is feeling in a given moment, and understand why other people's actions made sense to them. Empathy helps us to communicate our ideas in a way that makes sense to others, and it helps us understand others when they communicate with us.

8 0
3 years ago
"True or false: When evaluating a position strategy s implementation, it is more important to look at data and sales figures tha
zlopas [31]

Answer:

False

Explanation:

When evaluating a position strategy's implementation, it is more important to look at data and sales figures than at feedback from customers. The statement is not true rather false.

The most important thing to lool at is the feedback from customers, this enables you stand at a better position to innovate and implement better ideas making use of the feedback from customers.

8 0
3 years ago
Free market economies offer distribution methods for goods and services based on _____ .
Rasek [7]
Free market economies offer distribution methods for goods and services based on ''price''.

Answer: C) Price.
6 0
3 years ago
Read 2 more answers
Other questions:
  • Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The
    7·1 answer
  • Which of these statements about processes is not​ true?
    6·1 answer
  • MySchool Notebook Company uses 100,000 pounds of plastic pellets per year in the production of their custom 3-ring school binder
    6·1 answer
  • When you hire an employee, he or she must complete Form I-9. This form
    7·1 answer
  • If Pop Company exercises significant influence over Son Company and owns 40% of its common stock, then Pop Company: a. Would rec
    8·1 answer
  • Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.What would be the fair return for $1 Dis
    9·1 answer
  • What do pre-teen ducks hate? <br> will mark brainiest for right answer!<br> think hard.
    8·1 answer
  • PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!! PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!
    15·2 answers
  • Why might a country choose to devalue its currency? to please its trading partners to encourage exports to encourage imports to
    8·2 answers
  • How can you identify the campaigns and email sends most likely to get results for your business?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!