Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Thomas has a five-stock portfolio that has a market value equal to $400,000. The portfolio's beta is 1.5. Thomas is considering selling a particular stock to help pay some university expenses. The stock is valued at $100,000, and if he sells it, the portfolio's beta will increase to 1.8. What is the beta of the stock Thomas is considering selling?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939498

Have any Question? 


Related Questions in Basic Finance

Assume that european call and put options exist on a stock

Assume that European call and put options exist on a stock. That stock, however, is the target of a takeover in which an acquiring firm offers a fixed price for the stock. The takeover is almost certain to occur shortly ...

Refer to given problem the owner determines that if the

Refer to given problem. The owner determines that if the property were renovated instead of sold, after-tax cash flow over the next year would increase to $60,000 and the property could be sold after one year for $2.4 mi ...

A random sample of the birth weights of 186 babies has a

A random sample of the birth weights of 186 babies has a mean of 3103 g and a standard deviation of 691 g. Construct a 98% confidence interval estimate of the mean birth weight for all such babies. What is the confidence ...

1 present value of annuity what formula is used to

1. Present Value of Annuity. What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate? 2. Future Value of Annuity. How would you modify the FVA equation to det ...

1 explain how replication can be conceptualized as a

1. Explain how replication can be conceptualized as a factorial experimental design. 2. Why are research programs more important to the advancement of science than are single experiments? 3. Define a meta-analysis, and e ...

The following list contains several variables that

The following list contains several variables that differentiate college students. a. Select one variable from the list and then think of a second variable (on the list or one of your own) that should be positively relat ...

Compare and contrast transaction exposure and economic

Compare and contrast transaction exposure and economic exposure? Why might the cash flows of purely domestic firms be exposed to exchange rate fluctuations? How do most companies deal with economic exposure?

Assume two mutually exclusive investments have the

Assume two mutually exclusive investments have the following cash flows: Project Year 0 Year 1 Year 2 Year 3 Project A -$200 $100 $100 $100 Project B -$300 $150 $125 $150 Complete the following table assuming that the co ...

1 what is meant by a real option2 what is meant by the term

1. What is meant by a "real option"? 2. What is meant by the term overage for retail space? 3. How does the use of scenarios differ from sensitivity analysis?

1 how does an organization design deliver and evaluate a

1. How does an organization design, deliver and evaluate a global talent management strategy? 2. Which talent management indicators would you include in the Standard Chartered's human capital scorecard? 3. How does the p ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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