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Varvara68 [4.7K]
3 years ago
9

An individual has $20,000 invested in a stock with a beta of 0.4 and another $65,000 invested in a stock with a beta of 1.8. If

these are the only two investments in her portfolio, what is her portfolio's beta
Business
1 answer:
Hitman42 [59]3 years ago
5 0

Answer:

Beta= 1.478

Explanation:

Giving the following information:

An individual has $20,000 invested in a stock with a beta of 0.4 and another $65,000 invested in a stock with a beta of 1.8.

To calculate the portfolio beta, we need to use the following formula:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

The proportion of investment:

A= 20,000/85,000= 0.23

B= 65,000/85,000= 0.77

Beta= (0.23*0.4) + (0.77*1.8)

Beta= 1.478

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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$218,917 –$16,419 1 25,700 5,985 2 5
Kryger [21]

Answer:

The IRR (in %) for Project A is 31%.

Explanation:

Let IRR be x%

At IRR, present value of inflows = present value of outflows.  

218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4

solving for x, we find:

x = 31%

Therefore, The IRR (in %) for Project A is 31%.

5 0
3 years ago
An asset has an average return of 10.94 percent and a standard deviation of 20.98 percent. What range of returns should you expe
valkas [14]

If the standard deviation is 20.98%. The range you should expect to see with a 95 percent probability is: -31.02 percent to +52.9 percent.

<h3>Expected range of return </h3>

Expected range of return = 10.94 percent ± 2(20.98 percent)

Expected range of return =[10.94 percent- 2(20.98 percent)]; [10.94 percent + 2(20.98 percent)]

Expected range of return =(10.94 percent- 41.96 percent); (10.94 percent + 41.96 percent

Expected range of return = -31.02 percent to +52.9 percent

Inconclusion the range of returns is: -31.02 percent to +52.9 percent.

Learn more about expected range of return here:brainly.com/question/25821437

8 0
2 years ago
Type your answer in the box.
Ipatiy [6.2K]

Answer:

Your answer is given below:

Explanation:

7 0
2 years ago
Kevin bought 300 shares of Intel stock on January 1, 2019, for $90 per share, with a brokerage fee of $200. Then, Kevin sells al
DiKsa [7]

Answer:

$27,200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

Kevin's basis = (300 shares x $90 per share) + $200 in sales commission

Kevin's basis = $27,000 + $200 = $27,200

Hope This Helps! :D

4 0
3 years ago
Earning interest on previously earned interest is called?
ioda
Bonus interest is it's name
7 0
3 years ago
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