Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

There are few, if any, real companies with negative betas. But suppose you found one with B=-,25.

A. How would you expect this stock's rate of return to change if the overall market rose by an extra 5%? What if the market fell by an extra 5%?

B. You have $1 million invested in a well-diversified portfolio of stocks. Now you receive an additional $20000 bequest. Which of the following actions will yield the safest overall portfolio return?
1. Invest $20000 in Treasury bills(shich have a B=0).
2. Invest $20000 in stocks with B=1.
3. Invest $20000 in the stock with B=-.25
describe your answer

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926374

Have any Question? 


Related Questions in Basic Finance

Quizquestion 1 according to the text a risk-averse investor

QUIZ Question 1. According to the text, a risk-averse investor _____. demands a premium for assuming risk will only participate in low-risk or risk-free investments is one of a small minority in the United States More th ...

1 define willingness to pay and how it can be evaluated2

1. Define willingness to pay and how it can be evaluated. 2. What information is normally obtained from a credit report? 3. In analyzing corporate credit, what further investigation would an underwriter employ beyond a c ...

1 is the presentation of a personal income statement

1. Is the presentation of a personal income statement appropriate? 2. GAAP as they apply to personal financial statements use the cash basis. Comment. 3. Is the concept of working capital used with personal financial sta ...

Research a potential employerassume that your favorite

Research a potential employer. Assume that your favorite company has invited you to interview. To prepare for the interview, research the company by reviewing its website, reading news stories, and exploring websites suc ...

1 why do consumers usually prefer fixed-payment loans to

1. Why do consumers usually prefer fixed-payment loans to simple loans when buying cars and houses? 2. What is a STRIP? Why were STRIPS created? What need were STRIPS intended to fill? 3. When corporations borrow money f ...

1 what does a z score below 2675 indicate according to the

1. What does a Z score below 2.675 indicate, according to the Altman model? 2. Indicate a practical problem with computing a Z score for a closely held firm. 3. No conclusive model has been developed to forecast financia ...

A poll conducted by the new york times shows candidate a

A poll conducted by the New York Times shows candidate A leading candidate B by 33 to 31 percent. A poll conducted by the Washington Post shows candidate B leading candidate A by 34 to 32 percent. If the margin of error ...

1 what benefits do flexible unit-load materials have in

1. What benefits do flexible unit-load materials have in contrast to rigid containers? How do return or reverse logistics considerations impact the two approaches? 2. What trade-offs are involved in the use of returnable ...

David wheelock of the federal reserve bank of st louis

David Wheelock of the Federal Reserve Bank of St. Louis describes the following episode at the beginning of the Great Depression: Following the stock market crash [of October 1929], the Federal Reserve Bank of New York u ...

1 what ratios are used to indicate profitability for banks2

1. What ratios are used to indicate profitability for banks? 2. Why are banks concerned about the percentage of earning assets to total assets? 3. What does the loan loss coverage ratio measure? 4. What type of ratio is ...

  • 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