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

An asset management firm has a 300 million portfolio

An asset management firm has a $300 million portfolio consisting of all stock. It would like to divest 10 percent of its stock and invest in bonds. It considers the possibility of synthetically selling some stock using e ...

Assignmentscott and lisa smith recently got married and

Assignment Scott and Lisa Smith recently got married and moved to your area. They are both 30 years old. Scott just finished his residency in internal medicine and has been offered a job at Memorial Hospital as a staff d ...

A car travels on a circular road with a radius r and

A car travels on a circular road with a radius R, and banking angle pheta. At what speed (vmax) does the car begin to skid if the static friction coefficient is us? Please show all work.

What is the business reason for china noahs potential

What is the business reason for China Noah's potential currency exposure? Does the company really need to subject itself to substantial exchange rate risk? Is the risk "material" to China Noah? Do you think China Noah sh ...

Suppose your company imports computer motherboards from

Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 21.1. You have just placed an order for 30,000 motherboards at a cost to you of 233.5 Singapore dollars each. You wi ...

A firm has previously issued fixed rate noncallable debt

A firm has previously issued fixed rate noncallable debt. Because interest rates are perceived to be temporarily high, the firm would like to have the flexibility of calling the debt later when rates are expected to fall ...

1 what is the difference between earnings per share eps

1. What is the difference between earnings per share (EPS), funds from operations (FFO), adjusted funds from operations (AFFO), and dividends per share? 2. Explain how an investor in an equity REIT may receive a current ...

If the net cash flows from operating investing and

if the net cash flows from operating, investing, and financial activities sum to zero, what is the change in cash compared to last period?

Finance assignmentcreate a 1050-word report and include the

Finance Assignment Create a 1,050-word report, and include the following: • Explain the relationship between risk and return • Identify an example of risk and return. • Explain which is more risky bonds or common stocks. ...

Calculating cost of equitythe dybvig corporations common

Calculating Cost of Equity The Dybvig Corporation's common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the market is 10 percent, what is Dybvig's cost of equity capital? (Do n ...

  • 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