Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please assist in answering all questions below 4

Please assist in answering all questions below 4.2. Study the information provided below...

90.2K

Verified Solution

Question

Accounting

image

Please assist in answering all questions below

4.2. Study the information provided below and answer the following questions: INFORMATION A retail investor invested R100 000 in an investment portfolio comprising five equity securities. The amounts invested in each of the five assets and the betas of the securities are shown in the table below. REQUIRED: Calculate the beta of the investor's portfolio. (5 marks) 4.3. The market consensus is that Q-Tech Limited has a beta of 1.25 and a dividend growth rate of 6%. The coming year's dividend is R2.12 per share and the consensus estimate of the coming year's market retum is 14%. T-bills currently offer a 6% return. Find the price at which Q-Tech's stock should sell (Hint: use the capital asset pricing model and the Gordon Growth model)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students