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Rufina [12.5K]
1 year ago
14

A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95

. What is the portfolio beta
Business
1 answer:
Lapatulllka [165]1 year ago
8 0

If a  portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. The portfolio beta is 1.119.

<h3>Portfolio beta</h3>

Using this formula

Portfolio beta=(Stock A portfolio×beta)+[(1-Stock A porfolio)× Stock B beta]

Let plug in the formula

βp = (.65 × 1.21) + [(1 - .65) × .95]

βp = (.7865) + [.35 × .95]

βp= .7865+ .3325

βp = 1.119

Therefore the portfolio beta is 1.119.

Learn more about  portfolio beta here:brainly.com/question/14986133

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Total current assets                                  <u> $2,908,320</u>  A

<u>Property, plant, and equipment</u>

Land                                                                          $76,193

Buildings                                        $4,033,369

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                                                                                 <u>$1,978,302</u>  B

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6 0
2 years ago
The chapter opener noted that in​ mid-2016 you could earn an interest rate of​ 0.25% by buying a​ 3-month Treasury bill or an in
ruslelena [56]

Answer:

The correct option is D,the markets for bonds of different maturities are separate or segmented

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Market segmentation theory is of the view that market for short-term and long-term bonds are segmented from each other,wherein investors with different preferences investing in different markets.

Banks for instance are short-term position takers due to their preference for liquidity and would favor investing short-term instruments like the 3-month Treasury bill such that at every point in time, there is enough cash liquidity to meet customers' request for withdrawal of funds.

On the flip side, pension fund administrators take a long-term position on investment, hence would prefer the 30-year Treasury bill since their payment of retirement benefits is usually a low portion of their total contributions received from contributors to their pension funds.

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3 years ago
Regional economic group is defined as ________.
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8 0
2 years ago
Wage contracts, efficiency wages, and the minimum wage are explanations for why:
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Answer:

B. Wages tend to be inflexible downward

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The development of human capital, technological advancement, and capital investment all contribute significantly to labor productivity. By making direct investments in or offering incentives for advances in technology and human or physical capital, business and the government can raise the labor productivity of their workforces.

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There are two approaches to calculating total output: as the value of all final goods and services produced, or as the value contributed at each stage of production.

Learn more about labor productivity: brainly.com/question/15410954

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6 0
2 years ago
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