Answer: BP = BD(WD) + BE(WE)
1 = 0.86(1-WE) + 1.39WE
1 = 0.86-0.86WE + 1.39WE
1 = 0.86 + 0.53WE
-0.53WE = -0.14
0.53WE = 0.14
WE = 0.14/0.53
WE = 0.2641509434
WD = 1 - WE
WD = 1 - 0.2641509434
WD = 0.7358490566
The dollar amount of investment in stock D = 0.7358490566 x $215,000
= $158,207.54
Explanation: The beta of the portfolio is 1, which corresponds to the beta of the market. The beta of the portfolio equals beta of each stock multiplied by the percentage of fund invested in each stock(weight). The weight of stock D is equal to 1 - weight of stock E. Therefore, we need to make weight of stock E the subject of the formula by solving the problem mathematically and collecting the like terms. The weight of stock E is 0.2641509434. The weight of stock E will be subtracted from 1 so as to obtain the weight of stock D, which is 0.7358490566. The dollar amount of stock D equal to $215,000 multiplied by 0.7358490566, which is $158,207.54.
Answer:
$50,400
Explanation:
To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.
<span>A company can have a product that they want a single customer to be able to use and profit from, they may sell that product to that customer at a lower price, allowing them to purchase more, and blocking out competitors with higher pricing.</span>
Answer:
The correct answer is a).
Explanation:
The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.
If the income elasticity of demand for medical care is 1.35,
<em>a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> TRUE, this is what the definition implies.
<em>b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. </em>FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.
<em>c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care.</em> FALSE. The elasticity relates percentual variations, not absolute value variations.
<em>d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> FALSE. The same as point b.
Answer:
The statement is: True.
Explanation:
A wholly-owned subsidiary is a corporation with a common stock owned by another company at one hundred percent (100%). When a company owns less than fifty percent (50%) of another company, the company holds a minority interest in it. The parent company will control all development, management, and profits with a wholly-owned subsidiary but it also shares costs and responsibilities.
