Answered: 11. You hold the positions in the table…

11. You hold the positions in the table below. COMPANY PRICE # SHARES BETA Goodmonth $25.00 200 + 3.0 Icestone $20.00 750 – 1.0 Bridgerock $50.00 600 + 2.0 A. What is the beta of your portfolio?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: You own $10,000 of City Steel stock that has a beta of 2.4. You also own $9,000 of Rent-N-Co (beta =…

A: Investment in City Steel stock (A) = $10,000 Beta of City Steel stock (BA) = 2.4 Investment in…

Q: ou own $14,504 of Opsware, Inc. stock that has a beta of 3.85. You also own $20,384 of Lowe’s…

A: Calculation of Market Risk Premium, Risk Premium for each stock and Portfolio Risk Premium:The…

Q: 19) If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to…

A: Solution: To find the 95% confidence interval, use the following formula Average + (2 * standard…

Q: 9. Portfolio beta and weights Rafael is an analyst at a wealth management firm. One of his clients…

Q: Suppose you have 100 common shares of Tillman Industries. The EPS is $4.00, theDPS is $2.00, and the…

A: Common shares=100 After split =100*2=200 Stock price = $60 After Split = $60/2= $30 EPS= $4 DPS= $2

Q: The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 4.2 percent and…

A: The cost of equity capital is the sum of risk-free rate plus beta. It is calculated as follows: Cost…

Q: LUCELEC’s preferred shares pay a dividend of $4.50. What is the value of the stock if your required…

A: Preferred stock means the amount raised against which dividend is given to stock holder but after…

Q: Using the equity asset valuation model (CAPM) equation, determine the required return for the shares…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: You invested in a portfolio comprising three shares - A, B and C. The following table shows the…

A: Beta coefficient shows the systematic risk of the assets. The beta factor shows the systematic risk…

Q: 15

A: Formula to calculate portfolio beta: Portfolio beta = wA*betaA + wB*betaB...........wN*betaN Formula…

Q: 5. Samsung has $150,000 invested in a 2-stock portfolio. $65,000 is invested in Stock X and the…

A: We are required to calculate the Beta of the portfolio from the following given details in this…

Q: Suppose you invest $22,500 by purchasing 200 shares of Abbott Labs (ABT) at $55 per share, 200…

A: COMPANY SHARE SHARE PRICE ABBOTT LABS 200 55 LOWES 200 35 BALL CORPORATION 100 45

Q: What is the company’s cost of common stock, rs?

A: Given information is: The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5…

Q: The Swanson Corporation's common stock has a beta of 1.07. If the risk-free rate is 3.4 percent and…

A: Cost of equity here will be the required rate of return. We need to calculate cost of equity or…

Q: An investor has $500,000 invested in a 2-stock portfolio. $200,000 is invested in Stock A and the…

A: Beta of portfolio is weighted average beta of all stock.

Q: WHAT IS THE VALUE OF THE COMMON STOCKS? IF THE COMMON STOCK HAS AN ANNUAL DIVIDEND OF $200 PER…

A: Value of the common stock can be calculated using Gordon growth model. Value of common stock =…

Q: Hoolahan Corporation's common stock has a beta of .87. Assume the risk-free rate is 3.6 percent and…

A: Risk free rate (Rf) = 3.6% Beta (B) = 0.87 Market return (Rm) = 11%

Q: The Rhaegel Corporation's common stock has a beta of 1.5. If the risk-free rate is 6 percent and the…

A: There are several methods for the calculation of cost of capital. All these methods are estimating…

Q: The Rhaegel Corporation's common stock has a beta of 1.8. If the risk-free rate is 4.9 percent and…

A: 1. COST OF EQUITY CAPITAL : = RISK FREE RATE + BETA X RISK PREMIUM 2. RISK PREMIUM : = EXPECTED…

Q: You own $17,765 of Opsware, Inc. stock that has a beta of 3.73. You also own $24,310 of Lowe's…

A: A combination of the different types of funds and securities for the investment is term as the…

Q: The following common stocks are available for investment: COMMON STOCK (Ticker Symbol) BETA…

A: 1) Beta of portfolio = Weighted average beta of individual portfolio

Q: what is the expected return of the three stock portfolio described below? common stock market…

A: Calculate the stock portfolio as follows:

Q: Smathers Corp. stock has a beta of 1.24. The market risk premium is 6.90 percent and the risk-free…

A: Using CAPM

Q: Hoolahan Corporation's common stock has a beta of 1.12. Assume the risk-free rate is 4.7 percent and…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: Your investment club has only two stocks in its portfolio. $20,000 is investedin a stock with a beta…

Q: Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.…

A: Answer - Step 1 - Calculation of Market Value of each Stock and all Stock - Particulars…

Q: of different c tocks each stock value is $15,000. The portfolio beta is equal to 1.5. You ecided to…

A: Beta of portfolio is the weighted average beta of each stock.

Q: An analyst gathers the following information about a company and the market: Current market…

A: Current stock price (P0) = €38.00 Last dividend (D0) = €2.50 Payout ratio = 30% ROE = 12% Growth…

Q: The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the…

A: Cost of equity : As per capital asset pricing Cost of equity is calculated by the use of risk free…

Q: Suppose you invest in 230 shares of Johnson and Johnson at $70 per share and 240 shares of Yahoo at…

A: To find: Rate of return of portfolio

Q: The Penny Corporation's common stock has a beta of 1.8. If the risk-free rate is 6.9% and the…

A: We require to calculate the Penny corporation's cost of equity capital in this question: As per…

Q: You have $10,000 to invest - $3,500 in Company ABC, the remaining amount in Company CBA. The…

A: Given: Amount = $10,000 Invested in ABC = $3,500 Return in ABC = 20% Return in CBA = 15%

Q: An investor is considering investing in the following two shares: Beta Fortress plc. 1.4 Castle plc…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: An investment club has set a goal of earning 15% on the money it invests in stocks. The members are…

A: “Hey, since the question contains multiple sub-parts, we will answer first three sub-parts. So…

Q: You own the following portfolio of stocks. What is the portfolio weight of Stock C? Stock Number…

A: The portfolio weight is the ratio of the value of a particular stock and total portfolio value Its…

Q: Donald Gilmore has $100,000 invested in a 2-stock portfolio. $70,000 is invested in Stock X and the…

A: Given: Total investment = $100,000 Investment in Stock X = $70,000 Investment in stock Y = $30,000 (…

Q: Q1. One of your company's customer has approached you and the customer says that he wishes to invest…

A: Ans: A Portfolio 1:- Expected return = Sum of Weight * Expected return = (.25*20) + (.75*14) = 5 +…

Q: Report inc as a shipping company with securities listed on the American stock exchange. The company…

A: WACC is the cost of capital which combines the cost of various sources of finance in the company…

Q: Radagast Inc. has one-million common shares outstanding, with each share priced at $12. The…

A: Using CAPM model

Q: 2. Cobra Banking Group issued preferred shares 10 years ago with a stated value of $95, and a…

A: In the given question we need to compute the current price of preferred stock.

Q: 1)What are the portfolio weights for a portfolio made up of 100 shares of HSBC with a current price…

A: Excel Spreadsheet:

Q: What is the beta of your portfolio?

A: A Portfolio beta is an average beta calculated on the basis of the weightage of each investment.…

Q: The Hudson Corporation’s common stock has a beta of 1.4. If the risk-free rate is 4.5 percent and…

A: Questions 1-2:Calculation of Cost of Equity Capital and WACC:The cost of equity capital is 13.60%…

Q: What is the portfolio's Beta

A: A pool of investments that comprises all the available investment opportunities across the globe is…

Question

11. You hold the positions in the table below.
COMPANY PRICE # SHARES BETA
Goodmonth $25.00 200 + 3.0
Icestone $20.00 750 – 1.0
Bridgerock $50.00 600 + 2.0
A. What is the beta of your portfolio?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If you hold a portfolio made up of the following stocks: Value Beta Stock A $2,000 1.5 Stock B $5,000 1.2 Stock C $3,000 .8 What is the beta of the portfolio? a) 1.17 b) 1.14 c) 1.32 d) need more information
Suppose you invested in the following three stocks and their corresponding Betas are as follows: Stocks Invested amount Beta Pfizer $9,038 1.56 Uber $2,194 0.83 Twitter $9.052 1.37 What is the beta of your portfolio (all investments)? (Round your answer to 2 decimal point)
A company has asked you to calculate the beta for their portfolio. The portfolio has the following stocks: Stock $ Amount Invested Beta for Each Stock A $ 350,000 1.2 B $ 125,000 .75 C $ 410,000 1.9 D $ 280,000 1.7
What is the beta of the following two stock portfolio? Security Beta of the security Amount invested A 1.35 $ 20,000 B 0.50 $ 30,000 a. 1.075 b. 1.00 c. 1.19 d. 0.84
You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. your answer is 1.2455, enter it as 1.25. Stock Amount Beta Apple $1,118 0.49 Microsoft $8,931 1.61 $4,479 1.36 $5,994 0.76 Ford Time Warner Expected Return 10.50% 16.90% 15.75% 11.80% 3
What is the below portfolio's beta assuming you have equal amounts of money invested in each stock? Answer to two decimal places. Stock Beta Incom Corporation 1 Weyland-Yutani Industries 1.6 Sienar Fleet Systems 0.4 Tyrell Corporation 0.1 Soylent Corporation 1
You hold the positions in the table below. Price Shares Beta Amazon.com $49.00 101 3.97 Family Dollar Stores McKesson Corp. 37.00 182 2.40 71.00 161 0.58 Schering-Plough Corp. 22.00 471 1.22 What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Portfolio beta % If you expect the market to earn 16.30 percent and the risk-free rate is 6.00 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Required return %
Suppose all possible investment opportunities in the world are limited to the five stocks listed in the following table. What are the market portfolio weights? (Click on the following icon O in order to copy its contents into a spreadsheet.) Number of Shares Outstanding (millions) Stock Price/Share ($) A 8.43 10 В 19.15 12 C 5.94 46.68 1 E 42.87 ..... Enter the percentage that each stock makes up of the total portfolio: (Round to two decimal places.) Stock % of Total (portfolio weight) A % В % E % 20
fr1. Subject :- Accounting \ Graph the value of your portfolio as a function of the relevant stock price. Please create a graph for stock prices between 130 and 165. Assume today is the last day for exercising your options. Short a call at 163, long a put at 163, and long one share of the stock.
What is the beta of a portfolio consisting of one share of each of the following stocks, given their respective prices and beta coefficients? Stock Pricd Beta A $10 1.4 B $24 0.8 C $41 1.3 D $19 1.8 How would the portfolio beta differ if (a) the invesstor purchased 200 shares of stocks B and C for every 100 shares of A and D and (b) equal dollar amounts were invested in each stock?
You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25. Amount Beta Expected Return $9,370 0.69 10.50% Microsoft $5,598 1.6 16.90% $4,261 1.1 15.75% $4,668 2.39 11.80% Stock Apple Ford Time Warner
Determine the market value of a Digicel Stock if D0 = 3.00, Ks = 13%, G = 6%.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS