49Mike Flannery holds the following portfolio: StockInvestmentBetaAP150,0001.40B 50,0000.80C 100,0001.00D 75,0001.20TotalP375,000 What is the portfolio's beta?Group of answer choices1.561.291.171.061.42

Answer) Calculation of Portfolio Beta Stock Investment Weightage Beta Weighted Beta…

Answered: Mike Flannery holds the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

step by step explaination (no excel)
Ab. 102.
6
2 Tom holds the following portfolio Stock Investment Stock Investment Beta A $150,000 14 B $50,000 0.8 S100,000 D S75,000 1.2 Total $375,000 Tom plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change?
26) Your portfolio is comprised of the following stocks: $125,500 in stock Bross with a beta 2.8; $112,000 in stock Cameron with a beta of 2.2; and $107,000 in stock Berthoud with a beta of 0.3. What is beta of your portfolio. 5.30 1.77 1.83 1.35
Jim Angel holds a $200,000 portfolio consisting of the following stocks: Stock Investment Beta A $ 50,000 0.50 B 50,000 0 C 100,000 1.20 Total $200,000 What is the portfolio's beta? a. 0.725 b. 1.115 c. 0.850 d. 1.000
26) Your portfolio is comprised of the following stocks: $125.500 in stock Bross with a beta 2.8; $112,000 in stock Cameron with a beta of 2.2; and $107,000 in stock Berthoud with a beta of 0.3. What is beta of your portfolio. 1.35 5.30 1.77 O 1.83
Megan Ross holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta? Group of answer choices 1.06 1.17 1.29 1.42 1.56
Portfolio Beta Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 2.3. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
Tiempo restante U:28:23 What is the beta of a portfolio that has $18,400 in Stock M, $6,320 in Stock N, $32,900 in Stock O and $11,850 in Stock P. Their Betas are .97, 1.04, 1.23, and .88, respectivley? O a. 1.04 O b. 1.11 О с. 1.08 O d. 1.15 O e. .99
13. Assume you own the following portfolio: Stock A B C D Price #shares beta 140 20,000 1.2 600 8,000 2.0 50 30,000 0.8 120 30,000 1.4 It is 2/15 and you want to hedge till 7/31. You have the following contracts on the S&P500 index available to you. The correlation between your portfolio and the E-mini S&P500 index is 0.85 Maturity March June September December futures value 3120 3140 3150 3180 a. Which is the appropriate maturity of the contract? b. Should you go long or short on the futures contract? c. What are the optimal number of contracts? d. How effective can you expect your hedge to be? Answer: a. Since contract has to expire after the hedge date the appropriate contract is September b. I have a long position and the correlation is positive so I would take a short position in the futures contract c. Number of futures contract is given by Ny = () ) Stock Price #shares beta MV=P*Q ABCD 140 20,000 1.2 2,800,000 0.22 600 8,000 2.0 4,800,000 0.37 50 30,000 0.8 1,500,000 0.12 120…
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 .

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Stock	Investment	Beta
A	P150,000	1.40
B	50,000	0.80
C	100,000	1.00
D	75,000	1.20
Total	P375,000

Mike Flannery holds the following portfolio: Stock Investment Beta A P150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total P375,000 What is the portfolio's beta? Group of answer choices 1.56 1.29 1.17 1.06 1.42