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Rufina [12.5K]
2 years 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]2 years 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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A static budget is one that shows estimated revenues and costs at multiple activity levels.

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You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You
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It may be more expensive and time-consuming than using an intermediary

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EleoNora [17]

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The manufacturer have to produce 20,000 circuit boards per run with 50 production runs

Explanation:

Let x = number of circuit boards to be produced

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Note: it costs $10 each to produce x circuit boards and $400 to set up

Therefore, The cost per run = 10x + 400

The 1,000,000 circuit boards at x circuit board per run would require 1000000/x runs.

Therefore, production costs = cost per run * production run

production costs = (10x + 400)*(1000000/x) = 10,000,000 + 400,000,000/x

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Number of circuit boards that should be produced to minimize cost is 20,000

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4 0
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on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.
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Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

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What Are Short-Term Investments?

  • Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
  • After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
  • Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
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Answer:

Debit Accounts Receivable, credit Allowance for Doubtful Accounts.

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The next step after that is to complete the entries by debiting Cash, and crediting the Accounts Receivable to record the cash collection in respect of previously written off accounts receivable.

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