Iv. you currently hold a diversified portfolio with a beta of 1.1. the value of your investment is $500,000. the risk-free rate is 3%, the expected return on the market is 8%. a. using the capm, calculate the expected return on your portfolio. b. suppose you sell $10,000 worth of chevron stock (which is currently part of the portfolio) with a beta of 0.8 and replace it with $10,000 worth of jp morgan stock with a beta of 1.6. what will be beta of your new portfolio? c. suppose one of the stocks currently in your portfolio has beta of -.1. what is the expected return on this stock? compare this stock to the risk-free asset. aren't you better off selling this stock and replacing it with the risk-free asset? why or why not? d. suppose one of the stocks currently in your portfolio has beta of 0. what is the expected return on this stock? compare this stock to the risk-free asset. aren't you better off selling this stock and replacing it with the risk-free asset? why or why not?

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.