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Computing the value of investment in stock

You own a $210,000 portfolio that is invested in stock A and B. The portfolio beta is equal to the market beta. Stock A has an expected return of 18.7 percent and has a beta of 1.42. Stock B has a beta of 0.88. What is the value of your investment in stock A?

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Finance Basics: Computing the value of investment in stock

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the value of investment in stock

Reference No:- TGS0672230

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find market value of stock if dividends grow at same rate

Q : Determining the present value of cash flow stream

Q : What accounting entry would be necessary

Q : What is the amount of dividends received by the common

Q : Computing the value of investment in stock

Q : How to work for dynamo corporation

Q : How much should each partners capital change

Q : Find current stock price if equired rate of return is given

Q : How to operates in four different divisions

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the value of investment in stock

Reference No:- TGS0672230

Recent Questions Asked Finance Basics

Q : Find market value of stock if dividends grow at same rate

Q : Determining the present value of cash flow stream

Q : What accounting entry would be necessary

Q : What is the amount of dividends received by the common

Q : Computing the value of investment in stock

Q : How to work for dynamo corporation

Q : How much should each partners capital change

Q : Find current stock price if equired rate of return is given

Q : How to operates in four different divisions

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