Dontrell Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 1.225.StockInvestmentA$50,000B$50,000с$50,000D$50,000Total$200,000If Dontrell replaces Stock A with another stock, E, which has a beta of 1.35, what will the portfolio's new beta be? Do not round your intermediate calculations.a. 1.5625b. 1.8000O c. 1.2500d. 1.3909e. 1.4125Beta0.601.801.101.40 Based on the corporate valuation model, Gray Entertainment's total corporate value is $1,075 million. The company's balance sheet shows $200 million of notes payable, $300 million of long-term debt, $50 million ofpreferred stock, $180 million of retained earnings, and $800 million of total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of its price per share?Oa. $27.20O b. $21.00c. $29.00d. $23.00Oe. $13.80

Portfolio beta refers to the risk that is associated with the portfolio due to the proportion of…

Dontrell Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 1.225. Stock Investment A $50,000 B $50,000 с $50,000 D $50,000 Total $200,000 If Dontrell replaces Stock A with another stock, E, which has a beta of 1.35, what will the portfolio's new beta be? Do not round your intermediate calculations. O a. 1.5625 O b. 1.8000 O c. 1.2500 O d. 1.3909 Oe. 1.4125 Beta 0.60 1.80 1.10 1.40

Dontrell Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 1.225. Stock Investment A $50,000 B $50,000 с $50,000 D $50,000 Total $200,000 If Dontrell replaces Stock A with another stock, E, which has a beta of 1.35, what will the portfolio's new beta be? Do not round your intermediate calculations. O a. 1.5625 O b. 1.8000 O c. 1.2500 O d. 1.3909 Oe. 1.4125 Beta 0.60 1.80 1.10 1.40

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

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Donald Gilmore has $100,000 invested in a 2-stock portfolio. $30,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 0.73 b. 0.80 c. 0.87 d. 1.01 e. 0.94
You own a portfolio that has $3,00o0 invested in Stock A and $4,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
You have a 2-stock portfolio with a total value of $100,000. $60,000 is invested in Stock A with a beta of 1.50 and the remainder is invested in Stock B with a beta of 0.75. What is your portfolio's beta? Do not round your intermediate calculations. Round your final answer to two decimal places.
Assume you have formed a portfolio of stocks by investing $200 in stock X, $300 in stock Y, and $500 in stock Z. If the Beta for stock X, Y, and Z are -1 , 0.3 , and -1.8 respectively. What will be your portfolio Beta? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
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.
You hold a diversified $100, 000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. a. 1.500 b. 1.310 c 1.195 d. 1.165 e. 1.150 .
You have a portfolio with the following: Stock Number of Shares Price Expected Return W 1,000 $ 57 14% X 900 34 18 Y 650 70 16 Z 875 55 17 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You have a portfolio with the following: Stock W X Y Z Number of Shares 475 840 475 650 Expected return Price $43 % 29 94 51 What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected Return 10% 15 11 14
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
Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.79. What is his portfolio's beta? Do not round your intermediate calculations. Round your final answer to 2 decimal places. Group of answer choices 0.87 1.01 1.05 1.22 1.19
You own a portfolio that has a total value of $195,000 and it is invested in Stock D with a beta of .93 and Stock E with a beta of 1.35. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D? Multiple Choice $28,437.50 $16,250.47 $162,500.00 $24,375.23 $32,500.00
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.88. Stock Investment Beta A $50,000 0.50 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total $200,000 If Jill replaces Stock A with another stock, E, which has a beta of 1.45, what will the portfolio's new beta be? Do not round your intermediate calculations. Select one: a. 1.28 b. 0.83 c. 1.39 d. 1.11 e. 1.22

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