Question
In: Finance
1. You own 500 shares of Stock A at a price of $65 per share, 597...
1. You own 500 shares of Stock A at a price of $65 per share, 597 shares of Stock B at $71 per share, and 550 shares of Stock C at $34 per sharer. The betas for the stocks are 1.7, 1.2, and 0.6, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. A stock has an expected return of 13.7 percent, a beta of 1.9, and the return on the market is 9.1 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
1- You own 600 shares of stock at a price of $3.61 per share. The company...
1- You own 600 shares of stock at a price of $3.61 per
share. The company has a 1 for 3 reverse split.
How many shares are now owned?
What is the new price/share?
What is the value of your investment before the
split?
After the split?
2- You own 5000 shares of stock at a price of $.45 per
share. The company has a 1 for 10 reverse split.
How many shares are now owned?
What is the new...
You own 395 shares of Stock X at a price of $36 per share, 265 shares...
You own 395 shares of Stock X at a price of $36 per share, 265
shares of Stock Y at a price of $59 per share, and 330 shares of
Stock Z at a price of $82 per share. What is the portfolio weight
of Stock Y?
Jay owns 500 shares of Baker stock. The current bid price is $78.05 per share and...
Jay owns 500 shares of Baker stock. The current bid price is
$78.05 per share and the current ask price is $78.10 per share.
What is the current value of his shares?
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...
You own 1,100 shares of stock in Avondale Corporation. You will
receive a $2.00 per share dividend in one year. In two years, the
company will pay a liquidating dividend of $75 per share. The
required return on the company's stock is 20 percent.
a.
Ignoring taxes, what is the current share price of your stock?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)(Show work)
b.
If you would rather have equal...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $1.80 per share...
You own 1,100 shares of stock in Avondale Corporation. You will
receive a $1.80 per share dividend in one year. In two years, the
company will pay a liquidating dividend of $45 per share. The
required return on the company's stock is 20 percent.
a.
Ignoring taxes, what is the current share price of your stock?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
b.
If
you would rather have equal dividends...
You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...
You own 1,100 shares of stock in Avondale Corporation. You will
receive a $2.00 per share dividend in one year. In two years, the
company will pay a liquidating dividend of $48 per share. The
required return on the company's stock is 20 percent. a. Ignoring
taxes, what is the current share price of your stock? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) b. If you would rather have equal dividends
in...
An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the...
An
investor purchased 200 shares of stock at $100 per share on 65%
margin. Suppose the maintance margin is 40% at what price does the
investor get a margin call?
Regarding the previous question, if the price declines to $70 per
share whats the return to the investors equity? What if the stock
price rises to $150 per share? ignore interest and transaction
costs.
Suppose you bought 100 shares of stock at an initial price of $37 per share. The...
Suppose you bought 100 shares of stock at an initial price of
$37 per share. The stock paid a dividend of $0.28 per share during
the following year, and the share price at the end of the year was
$41. (1) What is your total dollar return on this investment? (2)
What is the percentage return on the investment?
Suppose you bought 550 shares of stock at an initial price of $50 per share. The...
Suppose you bought 550 shares of stock at an initial price of
$50 per share. The stock paid a dividend of $0.54 per share during
the following year, and the share price at the end of the year was
$45. a. Compute your total dollar return on this investment. (A
negative value should be indicated by a minus sign.) b. What is the
capital gains yield? (A negative value should be indicated by a
minus sign. Do not round intermediate...
You own 1,000 shares of stock in Avondale Corporation. You will receive $3.115 per share cash...
You own 1,000 shares of stock in Avondale Corporation.
You will receive $3.115 per share cash dividend in one year. In two
years, the company will pay a liquidating dividend of $57 per
share. The required return on the company’s stock is 15 percent.
What is the current price of your stock? (Ignore taxes). If you
would rather have equal dividends in each of the next two years,
show how you can accomplish this by creating homemade dividends
(Hint: dividends...
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