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]
2 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]2 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
The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $310 million. It has liabilities of $3
defon

Answer: 8.79%

Explanation:

The premium or discount as a percent of NAV will be calculated thus:

NAV will be calculated as:

= (Market value of portfolio - liabilities ) / shares outstanding

= ($310 million - $3million) ÷ 10 million

= $30.7 per share.

Then, the calculation for the discount percent will be:

= (selling price - NAV) / NAV

= ($28 - $30.7) / $30.7

= ($-2.7) / $30.7

= (0.0879)

= 8.79%

Therefore, NAV is trading at discount of 8.79%

8 0
3 years ago
What will you need to change to make the message appropriate for both a subordinate and other subordinates? Make the message eve
bezimeni [28]

Answer: The correct answer is "Focus on congratulating the team using each individual’s name and use a more formal tone.".

Explanation: In order for the message to be more appropriate both for a subordinate and for other subordinates, the team and each individual subject should be congratulated with their own name so that they feel part of it and feel that their work is important for the team always in a formal tone that maintains respect among all.

4 0
3 years ago
If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing pro
lilavasa [31]

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

The algebraic formulation of the constraint is shown below:

Given that

The number of hours taken per unit of x is 4 hours

And the number of hours taken per unit of x is 2 hours

And, the maximum hours available is 100

Now based on the above information

The  algebraic formulation of the constraint is

= 4X+2Y ≤ 100

hence, the same is to be considered

6 0
2 years ago
Fundamentals of Supply are view for the point of the
ivanzaharov [21]

Answer:

Supply side is the view point of the Firms or the Businesses.

Explanation:

As the law of demand deals with the consumers side, the law of supply deals with the suppliers or the firms/businesses.

this tries to explain the factors that affect the supply, such as the prices of the substitutes and complements, the price of a commodity itself, taxes, government subsidies, technological influences, etc...

in this question, the 1st option, consumer is wrong. However, in certain situations, Government can be acted as a "supplier" (if there is a government monopoly on the supply of a good or a service", and government is a heavy influencer of supply through the implementaion of taxes and subsidies!  

5 0
3 years ago
The first step in creating a budget is to identify your expenses. true or false.
sergij07 [2.7K]

The answer is True. Hope this helps


5 0
3 years ago
Read 2 more answers
Other questions:
  • During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of
    9·1 answer
  • Whole Foods Market ordered 12 cases of organic vegetable soup with a list price of $18.90 per case and 8 cases of organic baked
    13·1 answer
  • Paul splits an investment of $20000 , a portion earning simple interest at a rate of 3.8 % per year and the rest earning at a ra
    12·1 answer
  • During the month of July, the company had the following activities: Issued 4,500 shares of common stock for $450,000 cash. Borro
    6·1 answer
  • Refresh produces soft drinks and sodas. Production of 100,000 liters was started in February, 85,000 liters were completed. Mate
    15·2 answers
  • Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If
    8·1 answer
  • Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the s
    15·1 answer
  • Which of the following The holding-period return (HPR) on a share of stock is equal to(s) the level of real interest rates? I) T
    8·1 answer
  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,0
    15·1 answer
  • The product market is the place where _______. Multiple choice question. businesses sell resources and households buy resources
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!