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sleet_krkn [62]
1 year ago
9

Here are some characteristics of two portfolios, the market index, and the risk-free asset. Expected Return Beta Standard Deviat

ion Portfolio A 11% 0.8 10% Portfolio B 14% 1.5 31% Market index 12% 1 20% T-bills 6% 0 0% Required: a-1. Calculate the return predicted by CAPM for a portfolio with a beta of 0.8. (Round your answer to 1 decimal place.) a-2. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. b. If instead you could invest only in bills and one of these portfolios, which would you choose
Business
1 answer:
SVETLANKA909090 [29]1 year ago
3 0

A. 1. Return predicted by capital asset pricing model for portfolio of .8

= (Risk free return+(Market return- risk free rate)B

B= Beta.

=(.06+(-12-06),8)

=(.06+,048)

= 10.80%.

A.2. Capital Asset pricing model return for portfolio of Beta of 1.5

=(.06+(-12-.06)1.5)

= 15.00%.

A.3. PORTFOLIO A- Portfolio A will be selected for investment because expected return is higher than required return and the portfolio is currently undervalued.

To know more portfolio visit:

brainly.com/question/17165367

#SPJ4

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Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to
lakkis [162]

Answer:

a. Unity of direction

Explanation:

Unity of direction: In this principle, the direction of work is given by the higher authority with a view to achieving the organizational objective.  

Division of work: In this principle, the work is divided between many subordinates/ employees, so that the task should be done in proper time and in an efficient & effective manner.

Scalar chain: This scalar chain represents the rank from high authority to low authority in a straight line so that proper communication/ cooperation can be done without any misunderstanding.  

Unity of command: In this principle, the employees are responsible for only one person/ one supervisor/ one commander.  

In the given scenario, the unity of direction principle applies as the board of directors wants to establish an independent business so that each domain objective can be achieved so that it becomes to accomplish the organizational objective.  

6 0
3 years ago
Arianna just made another fantastic​ investment: She purchased 400 shares in Great Gains Corporation for ​$20.0920.09 per share.
Gwar [14]

<u><em>Answer:</em></u>

<u><em>1. Likely the price of the stock either goes up or falls</em></u>

<u><em>2. There is no need for a stop loss order in this scenario.</em></u>

<u><em>3. 5412541.2</em></u>

<u>Explanation</u>:

1. Stock market prices are often  unstable, prices can be up today, the next day they are low.

2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.

3. A 10% Stop loss price would have been the idea order price rather than the ​$53.7353.73​.

4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a <em>calculated level </em>of  should be carefully decided.

8 0
3 years ago
At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is
Gnoma [55]

Answer:

The amount of the cash flow to creditors is $74

Explanation:

Beginning of the year:

Long-term debt = $308

Total debt = $339

At the end of the year:

Long-term debt = $269

Total debt = $349.

Interest = $35

Net new borrowing = Ending Long-term debt - Beginning Long-term debt

= $269 - $308

= ($39)

Cash flow to creditors = Interest paid - Net new borrowing

= $35 - ($39) = $ 74

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3 years ago
The expected date of confinement (eds) is usually estimated by a formula called:
Pachacha [2.7K]
It is called the Naegele's run the show. It predicts an expected due date in light of the beginning of the lady's last menstrual period. You just extra nine months and seven days to land at the due date. 
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Dmitry [639]

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