Business

FinanceQ&A LibraryWhich of the following is the most correct answer for the beta of a portfolio of 35 stocks where the lowest beta for an individual security is 0.84 and the highest is 1.51? Group of answer choices The beta of the portfolio must be 1.0 because of the large number of securities in the portfolio. The beta of the portfolio must be less than 1.0 because of the large number of securities in the portfolio. The beta of the portfolio will be between 0 and 1.51. The beta of the portfolio will be between 0.84 and 1.51.Question

Which of the following is the most correct answer for the beta of a portfolio of 35 stocks where the lowest beta for an individual security is 0.84 and the highest is 1.51?

Group of answer choices

The beta of the portfolio must be 1.0 because of the large number of securities in the portfolio.

The beta of the portfolio must be less than 1.0 because of the large number of securities in the portfolio.

The beta of the portfolio will be between 0 and 1.51.

The beta of the portfolio will be between 0.84 and 1.51.

Find answers to questions asked by student like you

Show more Q&A

Q: In "Retail: Discounters Get Their Day”, Business Week, January 14, 2002, the authors suggest that c...

A: Excessive Build-up of Inventory: When the inventory stocked or piled up in the store or company more...

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please typ...

A: Note: Calculations are typed as per request for your convenienceWhen an IPO is priced below the poss...

Q: The coupon rate and the face value of the bond is contained in the Group of answer choices bond i...

A: Bond indenture is the legal agreement between bond issuer and bond holder which consists of all term...

Q: The newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report ...

A: Calculation of Earnings Growth and Next Year’s Earnings:The earnings growth is 13.50%.

Q: Is there an easily identifiable debt-equity ratio that will maximize the value of a firm?

A: Theoretically, there exists a debt equity ratio at which the value of the firm gets maximized. Howev...

Q: Q3. Company ABC just sold their most profitable division for $100 million in cash. The company has a...

A: Hi, since there are multiple questions posted, we will answer the first question alone. Kindly repos...

Q: A proposed nuclear power plant will cost $2.7 billion to build and then will produce cash flows of $...

A: Part A & B:Calculation of NPV at Discount Rate of 3% and 16%:The NPV at discount rate of 3% is $...

Q: What is internal Rate of Return - Before Tax Cash Flow - BTIRR? Please provide example.

A: Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash...

Q: You are the CFO of Oriole, Inc., a retailer of the exercise machine Slimbody6 and related accessorie...

A: Incremental cash flow at the beginning of the project = -( initial investment in the store + initial...