subject
Business, 30.10.2021 23:10 anggar20

You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 7.725%. The current risk-free rate is 3%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.25, what will be the required return on your $5.5 million portfolio

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:30
Starting at age 30, you deposit $2000 a year into an ira account for retirement. treat the yearly deposits into the account as a continuous income stream. if money in the account earns 7%, compounded continuously, how much will be in the account 35 years later, when you retire at age 65? how much of the final amount is interest?
Answers: 2
question
Business, 22.06.2019 04:30
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 Ɨ 6.716)
Answers: 2
question
Business, 22.06.2019 17:30
Which curve shows increasing opportunity cost as you give up more of one option? demand curve bow-shaped curve yield curve indifference curve
Answers: 3
question
Business, 22.06.2019 19:40
Anita has been named ceo of a popular sports apparel company. as ceo, she is tasked with setting the firm's corporate strategy. which of the following decisions is anita most likely to makea) whether to pursue a differentiation or cost leadership strategy b) which customer segments to target c) how to achieve the highest levels of customer satisfaction d) what range of products the firm should offer
Answers: 2
You know the right answer?
You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return...
Questions
question
Mathematics, 03.08.2019 07:50
question
Mathematics, 03.08.2019 07:50
question
Mathematics, 03.08.2019 07:50
Questions on the website: 13722360