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Juliette [100K]
1 year ago
15

Is a put option on a high-beta stock worth more than one on a low-beta stock? the stocks have identical firm-specific risk.

Business
1 answer:
Leona [35]1 year ago
8 0

The stocks have identical firm-specific risks. Holding firm-specific risk constant, higher beta implies higher total stock volatility. Thus, the value of the put option increases as the beta increases.

Firm-precise risk is the diversifiable danger of an asset. This is the component of threat that is specific to a selected company that does not have an effect on different companies. Efficient diversification can remove this sort of threat.

As soon as different, buyers are nonetheless issued to market-wide systematic risk. Total hazard is unsystematic chance plus systematic risk. Systematic change is attributed to vast marketplace factors and is the investment portfolio threat that isn't always based totally on character investments.

Learn more about stocks here brainly.com/question/25765493

#SPJ4

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The beginning checkbook balance of Shelley Co. was $5,559.10. The bank statement showed a bank balance of $7,888.44. The bookkee
amid [387]

Answer:

$7,999.54

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

To correctly adjust the book balance, items recognized in the bank statement that are yet to be recorded in the books are done.

The adjusted balance

= $5,559.10 + $499.88 + $1,256.45 + $750.99 - $66.88

= $7,999.54

7 0
3 years ago
Pakistan’s GDP in 2010, using the official exchange rate on 1/1/2010, is equal to $300 billion USD ($300,000,000,000). When 2010
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Answer:

Undervalued

Explanation:

The PPP exchange rate is the implicit exchange rate, so that everywhere, one dollar has the same purchasing power. In general, this exchange rate is different from the exchange rate on the market.

Because the same nominal GDP translates to a higher real GDP by using the PPP exchange rate, one Pakistan Rupee must be valued more in terms of U.S. dollars than in contexts of the market exchange rate under the PPP exchange rate. The Pakistan Rupee is therefore worth less than its true value in the economy, i.e., undervalued.

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4 years ago
Why do many executives prefer visioning to execution?
alexgriva [62]

Answer:

Visioning is more exciting than execution.

Explanation:

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1. Determine the total cost of the program (tuition, fees, books, cost of living, etc)

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structure because it's all about how you put it together

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