finance problems

Question # 00003924 Posted By: neil2103 Updated on: 11/22/2013 11:17 PM Due on: 11/27/2013
Subject Finance Topic Finance Tutorials:
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Wilson Wonder’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 per value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity?
Suppose rRF = 5%, rM = 10%, and rA = 12%
a. Calculate Stock A’s beta.
b. If Stock A’s beta were 2.0, then what would be A’s new required rate of return?


You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta1.1. You are considering selling $100,000 worth of one stock with beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions?
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Tutorials for this Question
  1. Tutorial # 00003705 Posted By: neil2103 Posted on: 11/22/2013 11:17 PM
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    The solution of finance problems...
    finq.xlsx (9.95 KB)

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