Question

Answer the following questions

Lamis owns 100 shares of Stock S which has a price of $12 per share and 200 shares of Stock G which has a price of $3 per share. What is the proportion of Lamis's portfolio invested in stock S

Answer 1

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Check the following expected returns and standard deviations of
assets in the table below which asset should be selected?

Answer 2

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The expected return and the standard deviation of returns for asset
below is ______.

Answer 3

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Jane holds three stocks in her portfolio: L, M, and O. The
portfolio beta is 1.40. Stock L comprises 15 percent of the dollar
value of her holdings and has a beta of 1.0. If Jane sells all of
her investment in L and invests the proceeds in the risk-free
asset, her new portfolio beta will be ______.

Answer 4

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Sami has a portfolio of three assets. Find the expected rate of
return for the portfolio assuming he invests 50 percent of its
money in asset A with 10 percent rate of return, 30 percent in
asset B with a rate of return of 20 percent, and the rest in asset
C with 30 percent rate of return.

Answer 5

Choose...

An insurance company has recommended a $100,000 portfolio
containing assets B, D, and F. $20,000 will be invested in asset B,
with a beta of 1.5; $50,000 will be invested in asset D, with a
beta of 2.0; and $30,000 will be invested in asset F, with a beta
of 0.5. The beta of the portfolio is

Answer 6

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A beta coefficient of 0 represents an asset that

Answer 7

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what is the systematic risk for a portfolio with two-thirds of the
funds invested in X and one-third invested in Y?

Please Solve As soon as

Solve quickly I get you two UPVOTE directly

Thank's

Abdul-Rahim Taysir

Answer #1

Dear student, only one question is allowed at a time. I am answering the first question

1)

Value of an investment in the portfolio

= Number of shares x Market price per share

So, Value of Investment in Stock S

= 100 x $12

= $1,200

Similarly, Value of Investment in Stock G

= 200 x $3

= $600

So, Total value of the portfolio

= Value of stock S + Value of stock G

= $1,200 + $600

= $1,800

So, proportion of Investment in stock S

= Value of stock S / Value of the portfolio

= $1,200 / $1,800

= 0.6667 or 66.67%

Juvani has a beta of 1.50, the risk-free rate of interest is
currently 12 percent, and the required return on the market
portfolio is 18 percent. The company plans to pay a dividend of
$2.45 per share in the coming year and anticipates that its future
dividends will increase at an annual rate as follow; D2017= 2,32,
D2016= 2.12, D2015=2.30. what is the price of Juvani stock
Please Solve As soon as
Solve quickly I get you two UPVOTE directly...

If you expect the market to increase which of the following
portfolios should you purchase?
Select one:
a. a portfolio with a beta of 1.0
b. a portfolio with a beta of 0
c. a portfolio with a beta of -0.5
d. a portfolio with a beta of 1.9
A firm is evaluating an investment proposal which has an initial
investment of $5,000 and cash flows presently valued at $4,000. The
net present value of the investment is ______.
Select...

If you expect the market to increase which of the following
portfolios should you purchase?
Select one:
a. a portfolio with a beta of 1.0
b. a portfolio with a beta of 0
c. a portfolio with a beta of -0.5
d. a portfolio with a beta of 1.9
A firm is evaluating an investment proposal which has an initial
investment of $5,000 and cash flows presently valued at $4,000. The
net present value of the investment is ______.
Select...

You are planning to buy Apple stock. and you expect it to pay a
dividend of $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years.
You expect to sell the stock for $100 in 3 years. If your required
return for purchasing the stock is 12 percent, how much would you
pay for the stock today?
Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir

Use the following information to answer the next two
questions:Myrna has $175,000 invested in a stock that has
a beta of 0.6 and $400,000 invested in a stock with a beta of 1.4.
The return on the market is 11 percent, and the risk-free rate of
return is 4.5 percent.
Show ALL your work.
a) If these are the only two investments in her portfolio, what
is her portfolio's beta? Round your answer to two decimal
places.
b) Use the...

The charter company has the following financing outstanding.
What is the WACC for the company?
Debt: 40,000 bonds with a 8% coupon rate and a current price
quote of 1200 the bonds have 25 years to maturity. 150,000 zero
coupon bonds with a price quote of 185 and 30 years to
maturity.
Preferred Stock: 100,000 shares of 5% preferred stock with a
current price of $78, and a par value of $100.
Common Stock: 1,800,000 shares of Common Stock; the...

An investor is considering making an investment into a stock
which has a beta of 1.6 and an expected return of 13%. The investor
is a rational and risk averse person who likes to diversify if
there are other assets available for investing. Currently, there is
a risk-free asset available for investing with a 2% return. The
investor has $1,000 available for investing purposes.
(a) (If investor invests $150 into the risk-free asset and $850
into the risky stock, what...

Which of the following is FALSE?
Select one:
a. A portfolio combining two assets with less than perfectly
positive correlation can reduce total risk to a level below that of
either of the components.
b. A firm has high sales when the economy is expanding and low
sales during a recession. This firm's overall risk will be higher
if it invests in another product which is counter cyclical.
c. A portfolio that combines two assets having perfectly positively
correlated returns...

Answer the following questions
Al Safa Inc. plans to issue new bonds to finance its new project.
In its efforts to price the issue, Al-Safa has identified a company
of similar risk with an outstanding bond issue that has an 8
percent coupon rate having a maturity of ten years. This firm's
bonds are currently selling for $1,091.96. If interest is paid
annually for both bonds, what must the coupon rate of the new bonds
be in order for the...

A stock you are looking at has generated the following annual
returns: 13.2%, -11.4% and 7.2%. What was the standard deviation of
its returns? Answer in percent, rounded to two decimal places
(e.g., 4.32% = 4.32).
What is the CAPM required return of a portfolio with 43%
invested in the market portfolio, 14% invested in risk-free assets,
and the rest invested in a stock with a beta of 2.4? The risk free
rate is 0.7% and the expected market risk...

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