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3 years ago

A stock has a beta of 1.3. The systematic risk of this stock is ____________ the stock market as a whole.

1 answer:

8 0

The systematic risk for a stock whose beta is 1.3 shows that the stock is <u>higher than</u> the stock market as a whole.

<h3>What is Beta in Stock Market?</h3>

The beta is the statistic that indicates to the trader how that stock performs in contrast to all comparable stocks, or at minimum to the stocks that make a related index.

The volatility of a stock is measured by beta, which is the extent to which its price swings in proportion to the wider stock market.

A beta larger than one suggests that a stock's price fluctuates more rapidly.
A beta smaller than one suggests a stock's price becomes less volatile than the market as a whole.
A beta of one suggests that the stock moves in unison with the entire market.

Learn more about the stock index here:

brainly.com/question/19340027

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Taylor and Sons buys equipment on Aug. 1, 2008 for $100,000 cash. They estimatethe equipment will have a salvage value of $13,00

larisa86 [58]

Answer:

Journal Entry

Dr. Depreciation Expense $7,250

Cr. Accumulated Depreciation $7,250

Explanation:

Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.

Cost of Equipment = $100,000

Useful life of the asset = 5 years

Salvage value of the asset = $13,000

Depreciable value of the asset will be expenses equally every year over 5 years.

Depreciable value = Cost of the asset - Salvage value = $100,000 - $13,000 = $87,000

Depreciation Expense = Depreciable Value / Useful Life of the asset = $87,000 / 5 years = $17,400 per year

As only 5 month have been passed in 2008, the depreciation expense account will be charged as follow

Depreciation charge in 2008 = $17,400 x 5 / 12 = $7,250

8 0

4 years ago

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due

liubo4ka [24]

Solution:

Sum Present value of 60 payments

Rent 2000

Periods 60

Rate 12%

Present value of 60 payments $94,405 (Excel = PV( 1% , 60 , 2000))

Future value of these payments at t=9

Future value $1,03,249.99(Excel=FV(1%,9,94,405)

Periods 51

Rate 12%

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3 years ago

A company enters into a short futures contract to sell 5000 bushels of wheat for 571'4 cents per bushel. The initial margin is $

zalisa [80]

Answer:

563.4 cents

Explanation:

A margin call occurs when the margin of an investment falls bellow the maintenance margin.

In this problem, the production costs for 5,000 bushels are given by:

$Margin = Price*units -Cost\\\$1,500=\$5.714*5000 - Cost\\Cost = \$27,070$

The price per bushel that yields a margin of $1,100 is:

$\$1,100=Price*5,000- \$27,070\\Price =\$5.634=563.4\ cents$

You will receive a margin call at a price of 563.4 cents per bushel.

4 0

4 years ago

The entry to record the distribution of the stock dividend would include

Iteru [2.4K]

The correct answer is B. A debit to common stock distributed.

<em>The entry will be stock dividends debit, paid-in capital which is in excess per common credit stock, stock dividends which are being distributed.</em>

In credit entry it records distribution and declaration of stock dividend which includes the debit to the retained earnings and also a credit to the common stock.

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4 years ago

The premium of a health insurance plan refers to the

daser333 [38]

Total Cost of <span>Insurance Coverage

</span>

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3 years ago

Read 2 more answers