Business, 26.06.2020 16:01 amandasantiago2001

a. Movie Part’s bonds have 9 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield? b. Assume that the risk-free rate is 5% and that the market risk premium is 6%. What is the required return on the market, on a stock with a beta of 1.0, and on a stock with a beta of 1.2? c. Assume that the risk-free rate is 6% and that the expected return on the market is 13%. What is the required rate of return on a stock that has a beta of 0.7? d. One of your friend has $35,000 invested in a stock with a beta of 0.8 and another $40,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio’s beta? e. Imagine that you have portfolio of a $7,500 investment in each of 20 different common stocks. The portfolio’s beta is 1.09. Now, suppose you sell one of the stocks with a beta of 1.0 for $8,500 and use the proceeds to buy another stock whose beta is 1.05. Calculate your portfolio’s new beta.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:30, brucewayne390

Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400

Answers: 3

continue

Business, 22.06.2019 13:00, ksteele1

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Answers: 1

continue

Business, 22.06.2019 19:00, shey89

Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.

Answers: 2

continue

Business, 22.06.2019 22:10, ggg509

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.

Answers: 1

continue

You know the right answer?

a. Movie Part’s bonds have 9 years remaining to maturity. The bonds have a face value of $1,000 and...