Answer: ER(P) = ERX(WX) + ERY(WY)
16 = 13(1-WY) + 9(WY)
16 = 13 - 13WY + 9WY
16 = 13 - 4WY
4WY = 13-16
4WY = -3
WY = -3/4
WY = -0.75
WX = 1 - WY
WX = 1 - (-0.75)
WX = 1 + 0.75
WX = 1.75
The amount to be invested in stock Y = -0.75 x $106,000
= -$79,500
The Beta of the portfolio could be calculated using the formula:
BP = BX(WX) + BY(WY)
BP = 1.14(1.75) + 0.84(-0.75)
BP = 1.995 - 0.63
BP = 1.365
Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500
The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.
The best answer choice is D.
Answer:
B. The owner's drawing account is closed to the Income Summary account
Explanation:
If you decide to advertise in a newspaper, the tip that could be used to help you write an effective and attractive ad is to create a headline that catches your target audience's attention, as this is the first contact with your ad that may cause interest in advertising.
Some tips for writing an effective ad in a newspaper are:
- Determine the target audience
- Determine ad content
- Build a good layout
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In a newspaper, it is effective to use advertisements that portray urgency, opportunity, and calls to action.
Find out more about advertise here:
brainly.com/question/1658517
Answer:
The entries to record the transactions are given below.
a. Provide music lessons to students for $7,000 cash.
Debit Cash Asset $ 7000
CreditService Revenue income $ 7000
b. Purchase prepaid insurance to protect musical equipment over the next year for $3,000 cash.
Debit Prepaid Insurance equipment Asset $ 3000
Credit Cash Asset $ 3000
c. Purchase musical equipment for $10,000 cash.
Debit Equipment Asset $ 10,000
Credit Cash Asset $ 10,000
d. Obtain a loan from a bank by signing a note for $10,000
Debit Cash Asset $ 10,000
Credit Notes payable $ 10,000
