subject
Business, 22.10.2019 19:30 aaronlikly

Brandon calculated the portfolio’s beta as 0.930 and the portfolio’s expected return as 9.1150%. brandon thinks it will be a good idea to reallocate the funds in his client’s portfolio. he recommends replacing atteric inc.’s shares with the same amount in additional shares of transfer fuels co. the risk-free rate is 4%, and the market risk premium is 5.50%. according to brandon’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? (note: do not round your intermediate calculations.) 1.1935 percentage points 0.7508 percentage points 0.9625 percentage points 1.1069 percentage points analysts’ estimates on expected returns from equity investments are based on several factors. these estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways. suppose, based on the earnings consensus of stock analysts, brandon expects a return of 9.65% from the portfolio with the new weights. does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? fairly valued overvalued undervalued suppose instead of replacing atteric inc.’s stock with transfer fuels co.’s stock, brandon considers replacing atteric inc.’s stock with the equal dollar allocation to shares of company x’s stock that has a higher beta than atteric inc. if everything else remains constant, the portfolio’s risk would .

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 14:40, LilBrookilyn2701
Which website did you use to find the image you used in your career presentation? complete sentences are not necessary.
Answers: 1
image
Business, 22.06.2019 07:10, Derienw6586
Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.
Answers: 3
image
Business, 23.06.2019 06:30, janeou17xn
Afinance company wants to upgrade its accounting software to a higher version. this version change requires a change in data formats. which method represents a change in data formats?
Answers: 1
image
Business, 23.06.2019 09:30, Gattuso
Which of these is true about a mandated reporter
Answers: 1
You know the right answer?
Brandon calculated the portfolio’s beta as 0.930 and the portfolio’s expected return as 9.1150%. bra...

Questions in other subjects:

Konu
Mathematics, 18.12.2020 19:10
Konu
Computers and Technology, 18.12.2020 19:10
Konu
English, 18.12.2020 19:10