Answer:nenhuma das questões a cima
Explanation:
Answer: $106,250
Explanation: Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05).
He needs $106,250 to close ([$125,000 - $50,000] + $31,250).
Answer:
a. 16.00%
b. $13.50
Explanation:
a. The computation of the required return is shown below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.5 × (12% - 4%)
= 4% + 1.5 × 8%
= 4% + 12
= 16.00%
b. Now the stock price is
= Current year dividend ÷ (Required rate of return - growth rate)
= ($1 × 1.08) ÷ (16% - 8%)
= 1.08 ÷ 8%
= $13.50
We simply applied the above formulas
Answer:
65% of the portfolio is invested in stock.
Explanation:
The weight of stock is assumed to be x.
Then, the Weight of Risk-Free Stock will be 1 - x.
Beta of Portfolio =![x\ \times\ 1.17\ +\ [\ ( 1\ -\ x)\ \times\ 0]](https://tex.z-dn.net/?f=x%5C%20%5Ctimes%5C%201.17%5C%20%2B%5C%20%5B%5C%20%28%201%5C%20-%5C%20x%29%5C%20%5Ctimes%5C%200%5D)
0.76 = 1.17 x
x = 0.76 / 1.17
x =0.64957
x = 64.957%
So, 65% of the portfolio is invested in stock.
