Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

You have a portfolio of $10,000 with a return of 12%. You are planning to sell one stock, currently worth $2,000 with a beta of 0.8 and replace it with $2,000 of a stock with a beta of 2.1. The risk free rate is 5% and the market risk premium is 8%. What is the new portfolio's return?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92565752
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Economics

Suppose that coca-cola is currently paying a dividend of

Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola's stock is 8%. Calculate the ...

In a recent year 8415394 male students and 4879215 female

In a recent year, 8,415,394 male students and 4,879,215 female students were enrolled as undergraduates. Receiving aid were 62.9% of the male students and 68.3% of female students. Of those receiving aid, 41.9% of the ma ...

Under what circumstances would lras and sras have the same

Under what circumstances would LRAS and SRAS have the same slope?

Consider cy y2 2y 4 many firms have access to this

Consider: C(y) = y^2+ 2y + 4. Many firms have access to this technology, in fact so many that there is not room for all to profitably operate in the industry. The market demand for the product is given by P = 30-Y , wher ...

Uni-trax publishers allows its sales team to buy and sell

Uni-Trax Publishers allows its sales team to buy and sell shares that pay out $1 only if the sales in the future fall within a certain range. Suppose that, currently, shares for sales between 1,000 and 2,000 textbooks ar ...

Why is the us banking system known as a dual banking system

Why is the US banking system known as a dual banking system? What historical developments led to that structure? How is the structure justified today?

The length of the first 10 words of 2 books are listed

The length of the first 10 words of 2 books are listed below. Find the range and standard deviation for each of the two samples, then compare the two sets of results. Does this appear to be a difference in variation? Boo ...

Imagine that in the consumption function autonomous

Imagine that in the consumption function, autonomous consumption is equal to 17.5, and the marginal propensity to consume is equal to 0.69. If current income (or output) is equal to 253.4, what is the value of aggregate ...

Why would a policy of re-importation of prescription drugs

Why would a policy of re-importation of prescription drugs be ineffective?

A manufacturing company wishes to compare two production

A manufacturing company wishes to compare two production facilities based on Defective units out of total unit production. The company obtains random samples from both facilities. Facility A produced a total of 983 units ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As