Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A stock portfolio is equally allocated among Stock A, B, and C. Stocks A, B, and C have betas of 1.9, 1, and 0.57, respectively. The market has just risen 4%. What would you expect to happen to this stock portfolio?

A. The stock portfolio will rise 3.8%.
B. The stock portfolio will rise 4%.
C. The stock portfolio will rise 4.6%.
D. The stock portfolio will rise 5%.

The risk-free rate of return is currently 5 percent, whereas the market risk premium is 11 percent. If the beta of Briar Tek's stock is 2, then what is the expected return on Briar Tek?

A. 27.50%
B. 28.00%
C. 26.50%
D. 27.00%

You invested $15,000 in a portfolio with an expected return of 10 percent and $10,000 in a portfolio with an expected return of 16 percent. What is the expected return of the combined portfolio?

A. 16.00%
B. 12.85%
C. 13.10%
D. 12.40%

Karen purchased a stock for $40 last year. She found out today that she had a -75% return on her investment. Which of the following must be true?

A. The stock is worth $10 today.
B. The stock is worth $30 today.
C. The stock paid no dividends during the year.
D. Both A and C must be true.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927199

Have any Question? 


Related Questions in Basic Finance

Aol is considering two proposals to overhaul its network

AOL is considering two proposals to overhaul its network infrastructure.  They have received two bids.  The first bid from Huawei will require a $18 million upfront investment and will generate $20 million in savings for ...

1 why should we be cautious about reports of research that

1. Why should we be cautious about reports of research that are published in the popular media and posted on the world wide web? 2. What are the three central characteristics of good writing? 3. Why should authors avoid ...

A bond with a par value of 100000 and a semiannual coupon

A bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 5.30% and a current price of $920.00. If the bond has 6 years to maturity, what is its current yield? 4.23% 4.34% 0.00% 4.18 ...

In a mass-transfer spray column a liquid is sprayed into a

In a mass-transfer spray column, a liquid is sprayed into a gas stream, and mass is transferred between the liquid and gas phases. The mass of the drops that are formed from a spray nozzle is considered a function of the ...

What information explicit and implicit can be derived from

What information (explicit and implicit) can be derived from financial statement analysis? Does the standardization required by GAAP add greater validity to comparisons of financial data between companies and industries? ...

The whilst co is analyzing a project that has projected

The Whilst Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of $8 ...

Use the value of the linear correlation coefficient to

Use the value of the linear correlation coefficient to calculate the coefficient of determination. What does this tell you about the explained variation of the data about the regression line? About the unexplained variat ...

You are assigned a paper and excel backup on exxon company

You are assigned a paper and excel backup on EXXON company. You will utilize all the material we have covered to analyze and assess the corporate health of the company. I provide some leading questions to be answered in ...

How does a conversion provision on a debt obligation

How does a conversion provision on a debt obligation provide an option to the investor? If the yield on a Treasury security is 3% and that of a similar-maturity municipal bond is 2.5%, what is the muni-Treasury yield rat ...

1 what is the difference between venture capital firms and

1. What is the difference between venture capital firms and private equity firms? What roles do they play in the financial system? 2. The author of a newspaper article providing advice to renters observes that "landlords ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen