Solved: Determining the percentage of the portfolio, Finance Basics

+44 141 628 6080
[email protected]

Determining the percentage of the portfolio

A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the portfolio is invested in the stock?

a. 71%

b. 77%

c. 84%

d. 89%

e. 92%

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the percentage of the portfolio

Reference No:- TGS0672978

Now Priced at $5 (50% Discount)

Recommended (96%)

Rated (4.8/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What is the average collection period for accounts

The financial statements of Hudson Manufacturing Company report net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning and end of the year, respectively.

Q : Determining the value of one share

The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your required rate of return on this security is 16 percent

Q : What should be adjusted balance of allowance for doubtful

In 2010, Freeze Company had credit sales of $900,000 and granted sales discounts of $18,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit balance of $22,500.

Q : What is return on invested capital

Further it has $10,000 of operating long term assets and an EBIT of $3000 with a 25% tax rate. What is MYG's ROIC (return on invested capital)?

Q : Determining the percentage of the portfolio

Q : Computing the total dividend payment

The company forecasts that its net income this year will be $1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

Q : What is the depletion expense recorded for 2010

On September 1, 2010, Drill Far Company purchased a tract of land for $2,300,000. The land is estimated to have a salvage value or $50,000, a useful life of four years, and contain an estimated 4,234,000 tons of iron ore.

Q : Methodology for calculating operational risk capital

Which of the following statements about its methodology for calculating an operational risk capital charge in Basel II is correct?

Q : Write a written statement in order to waive the gmat

There is a university which has asked me to write a written statement in order to waive the GMAT and a reason why it should be granted. I really need your help.

1959620

Questions
Asked

3,689

Active Tutors

1458847

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the percentage of the portfolio

Reference No:- TGS0672978

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the average collection period for accounts

Q : Determining the value of one share

Q : What should be adjusted balance of allowance for doubtful

Q : What is return on invested capital

Q : Determining the percentage of the portfolio

Q : Computing the total dividend payment

Q : What is the depletion expense recorded for 2010

Q : Methodology for calculating operational risk capital

Q : Write a written statement in order to waive the gmat

Describing health care coverage options for a client

Compare and contrast asthma and copd

Parents of an infant with gastro gastro reflux disorder

Articulate a public health response

Discussion about male client is seeking paternity testing

Discuss health inequities using a multimodal approach

Identify a healthcare problem or concern in louisiana

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the percentage of the portfolio

Reference No:- TGS0672978

Recent Questions Asked Finance Basics

Q : What is the average collection period for accounts

Q : Determining the value of one share

Q : What should be adjusted balance of allowance for doubtful

Q : What is return on invested capital

Q : Determining the percentage of the portfolio

Q : Computing the total dividend payment

Q : What is the depletion expense recorded for 2010

Q : Methodology for calculating operational risk capital

Q : Write a written statement in order to waive the gmat

Asked Questions