Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 14 13.3 pts assume that you hold a well-d

Question 14 13.3 pts Assume that you hold a well-diversified portfolio that has an expected...

80.2K

Verified Solution

Question

Finance

image

Question 14 13.3 pts Assume that you hold a well-diversified portfolio that has an expected return of 9.0% and a beta of 1.00. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 12.0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? 10.5%;1.25 9.3%; 1.05 12.0%; 1.25 11.0%; 1.05

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

3. Sedatives are: a. act on the cortex b. are used for anxiety c. are used for sleep...

Medical Sciences
Q

In a closed combustion vessel, propane (C3H8) and air are mixed at equivalence ratio of 1.11,...

Mechanical Engineering
Q

Which of the following is not one of the five kingdoms established by Robert Whittaker...

Biology
Q

homology and biogeography Sort the following examples into the correct categories The evidence exists in...

Biology
Q

Construct a 95 confidence interval for the population mean Asume the population has a normal...

Statistics
Q

Find the zeros of the function. State any multiplicity.y = (x + 1)(x - 1)(x...

Algebra
Q

The following geometric sequence is missing four terms Identify any of the following answers that...

Algebra
Q

Calvin owns 40% of the outstanding shares of Copernicus Corp., which has accumulated earnings and...

Accounting
Q

The accounting records of Rose Video show the following data for the year 2010: Life...

Accounting
Q

Sony introduces a new compact music player to compete with Apple's IPod that carries a...

Accounting
Q

Bond Issue Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation,...

Accounting
Q

I need help answering all of the requirement questions APPLY YOUR KNOWLEDGE Serial Case...

Accounting