Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

You have invested $10,593 portfolio in three securities. The three securities comprise of the risk-free asset, Stock A, and Stock B. The beta of stock A is 2.4 while the beta of stock B is 0.6. 17% of the portfolio is invested in the risk-free security. What is the dollar amount invested in stock B if the beta of the portfolio is 1.2?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92197916
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

An investor would like to add the following bond to her

An investor would like to add the following bond to her portfolio. The bond would be held for 7 years and then sold. The investor has gathered the following information to analyze the bond: Company XYZ Currency: CAD Face ...

1 you are valuing a common stock that just paid a dividend

1.) You are valuing a common stock that just paid a dividend of $1.25 per share. You are expecting the stock to grow at the rate of 4% annually, and the stock to give you a return of 9%. What should be the price of the s ...

A firm expects to earn 10000000 in cash in 2018 the firm

A firm expects to earn $10,000,000 in cash in 2018. The firm also expects to increase its cash earnings by 2% each year in perpetuity. Using a discount rate of 7.50%, what is the current value of these cash flows?

Within the secondary market which of the following us

Within the secondary market, which of the following US Treasury securities' prices will react most violently to a change in market interest rates (assume all securities were issued on the same date): a.90-day T- Bills b. ...

A 1000 par value bond sells for 1216 it matures in 20 years

A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14 percent coupon, pays interest semiannually, and can be called in 5 years at a price of $1,100. Calculate the bond's yield to maturity.

What are the different types of survey research error and

What are the different types of survey research error and describe an example of each.

Could you please explain this question for me pretty

Could you please explain this question for me? Pretty struggle with it right now.    "The biggest four banks in Australia are too big to fail. With reference to financial system stability, critique this statement."

Many people have a hard time differentiating the

Many people have a hard time differentiating the relationships in Project, Program, Portfolio, and Operations Management when it comes to managing projects. Why do you think this is the case? What can be done to help peo ...

Question - if the future value of an ordinary 5-year

Question - If the future value of an ordinary, 5-year annuity is $6,000 and interest rates are 8 percent, what's the future value of the same annuity due?

What is the 5 var in terms of holding period return for a

What is the 5% VaR (in terms of holding period return) for a portfolio with normally distributed returns, a mean return of 20%, and a standard deviation of returns of 40%?

  • 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