1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gogolik [260]
3 years ago
8

What must be the beta of a portfolio with e(rp) = 13.75%, if rf = 6% and e(rm) = 11%? (round your answer to 2 decimal places.) b

eta of portfolio?
Business
1 answer:
adell [148]3 years ago
6 0

Answer:

beta of portfolio is 1.55

Explanation:

First we calculate the Equity Risk Premium, given as:

Equity Risk Premium = Market Return - Risk Free Rate

= 11 - 6 = 5%

 Given that;

Risk Free Rate = 6%

 Return on Stock = 13.75%

 Second, we calculate the Return on Stock

Return on stock = Risk-free rate + Equity risk premium * Beta for stock

13.75 = 6 +5 *Beta

Beta = 1.55

You might be interested in
Although the unemployment rate is the single best indicator of how well the labor market is working, we discussed in class that
shepuryov [24]

The unemployment rate is not considered to be a complete measure because it does not count discouraged workers.

<h3>How is the unemployment rate calculated?</h3>

The unemployment rate includes only people who are still actively searching for work and they have to be in the labor force.

People who have looked for jobs for a while and then got discouraged and given up, are not counted as unemployed which therefore depresses the unemployment rate.

Find out more on the unemployment rate at brainly.com/question/13280244.

#SPJ12

5 0
2 years ago
Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally al
Ivenika [448]
THAT LINK IS A VIRUS DO NOT GO TO IT ALL LINKS ARE VIRUSES and also if you go to “goggle” you should see a camera icon on the top right and take a picture of the question and maybe get the answer there
8 0
3 years ago
g Oregon Corp. prepares its financial statements annually and has a calendar year end. The adjusted trial balance ( NO MORE ADJU
Semmy [17]

Answer:

$1,700,000

Explanation:

The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:

= Account receivable - allowance for doubtful debts

= $2,000,000 - $300,000

= $1,700,000

By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value

Therefore we ignored the bad debt expense

5 0
3 years ago
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:1st Quarter 2nd Quarter 3rd Quarter 4t
saw5 [17]

Answer:

Total cost= $392,500

Explanation:

Giving the following information:

1st Quarter= 24,000 units

2nd Quarter= 25,000

3rd Quarter= 21,000

4th Quarter= 22,000

The company's variable selling and administrative expense per unit is $2.30.

Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter. Also, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.

We will assume that insurance and taxes are for offices and properties of the selling and administrative department.

1st quarter:

Variable cost= 2.3*24,000= 55,200

Fixed expense= 9,000 + 44,000= 53,000

Insurance= 4,000

Total= $112,200

2nd quarter:

Variable cost= 2.3*25,000= 57,500

Fixed expense= 9,000 + 44,000= 53,000

Property taxes= 8,600

Total= $71,400

3rd quarter:

Variable cost= 2.3*21,000= 48,300

Fixed expense= 9,000 + 44,000= 53,000

Insurance= 4,000

Total= $105,300

4th quarter:

Variable cost= 2.3*22,000= 50,600

Fixed expense= 9,000 + 44,000= 53,000

Total= $103,600

Total cost= $392,500

7 0
3 years ago
The receivers of the communication must accommodate their perceived multiple meanings and personal agendas and then negotiate a
andriy [413]

Answer:

A. True

Explanation:

4 0
3 years ago
Other questions:
  • Gerrard, a manager at zincod clothing, organizes a survey to study the quality of the company's products. he instructs the surve
    8·1 answer
  • Ryan is working in a database that organizes vendor contact information. Ryan must find vendors located in two cities. The vendo
    8·1 answer
  • If you want to work in the construction field, what are some of the ways that you could advance your career?
    9·1 answer
  • Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/boo
    14·1 answer
  • The discounted payback period for a project will be _______ the payback period for the project given a positive, non-zero discou
    9·1 answer
  • In the post World War II period, considerable growth in total production took place in the United States. But at the same time,
    14·1 answer
  • Debt Management Ratios You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), bot
    8·1 answer
  • Which of the following is mostly associated with the federal reserves role as the governments bank
    7·1 answer
  • Pilet Pte Ltd balance sheet reflected assets of 10,000, liabilities of 5,000 and share capital of 2,000 as of December 31,2009.
    15·1 answer
  • A TV manufacturing company uses speakers at the rate of 8000/mo. When it places an order for speakers it incurs a fixed cost of
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!