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
Nataly_w [17]
2 years ago
8

Stock A has a beta of 1.2 and a standard deviation of 20%. Stock B has a beta of 0.8 and a standard deviation of 25%. Portfolio

P has $200,000 consisting of $100,000 invested in Stock A and $100,000 in Stock B. Which of the following statements is CORRECT? (Assume that the stocks are in equilibrium.) a. Portfolio P has a standard deviation of 22.5%. b. Portfolio P has a beta of 1.0. c. Stock B has a higher required rate of return than Stock A. d. More information is needed to determine the portfolio's beta. e. Stock A's returns are less highly correlated with the returns on most other stocks than are B's returns.
Business
1 answer:
noname [10]2 years ago
5 0

Answer:

The correct answer is option b.

Explanation:

Stock A has a beta of 1.2 and a standard deviation of 20%.

Stock B has a beta of 0.8 and a standard deviation of 25%.

Portfolio investment is $200,000.

Investment in stock A is $100,000.

Investment in stock B is $100,000.

The portfolio beta is

=\frac{Investment in stock A}{portfolio investment} *beta of stock A+\frac{Investment in stock B}{portfolio investment} *beta of stock B

=\frac{100,000}{200,000}*1.2+\frac{100,000}{200,000}*0.8

=0.6+0.4

=1

So, the portfolio beta for P is 1.

You might be interested in
g Which of the following are included when establishing advertising​ objectives? A. Tonality and advertising appeal B. Message a
Nataly_w [17]

Answer:

Advertising appeal and unique selling proposition.

Explanation:

Advertising is a promotional activity which purpose is to sell a product or service to a target audience.

The unique selling proposition of a product is intended to appeal to a specific. group of audience. For example, the social, psychological, physical and financial backgrounds of customers play a major role. When these various characteristics of the target group are known, it will be easy to determine how a product’s features would be a solution to the problems faced by the target audience.

Advertising appeals are the different techniques that are applied to get the attention of customers to patronize a particular product or service.

3 0
3 years ago
I want to start a new business. Ideas?
Aleks04 [339]
1.) Watch the news and find out a problem that everyone needs the solution to like a geologist national research business. Or something people don't have a specific catagory for or is in the random stuff cabinet
 
2.) Think about it and see what you can do to make it spectacular. 

3.) Think of a name for it.

4.) Get it pattened (I don't know how to spell it sorry)

5.) Make a card for it and tell people about it. For the child abuse example. (Sprinkle a little dramatic facts  then tell them what you do to help stop that just to get people intrested and wanting to help.)

6.) Then you can take it from there to get more and more people into your business.

To number 5, I forgot what that trick is but it is when you scare someone by something you told them then dis alarming them by telling the good side. You can basically get anyone to do or say yes to anything you want.

And you can use my geologist catagory idea because these days they really need them. Also my mom said that if your in college and you study for the geologist requirments thing ( I don't know what they call them I think coarses)
They pay you even when your not finished college just to work for them and she also stated why else would they randomly add geology in schools now and they make pretty good money!

Sorry for it being so long but I get excited over the smallest thing and I hope I helped you lots!! And Gooood Luck!!!

 
5 0
3 years ago
Peeples, Inc., has a book value of equity of $13,500. Long-term debt is $7,700. Net working capital, other than cash, is $1,990.
Reil [10]

Answer:

hope you like my answer

Explanation:

6 0
3 years ago
What were the origins of the Asian currency crisis?
valina [46]

Answer:

East and South east Asia

Explanation:

The crisis that later blew up to become a financial crisis over the year started from the east and south east Asia countries of Thailand , Indonesia and South korea in 1997 before spreading to other counties  leading to a fall  in value of the currencies ,and fall in stock market and assets prices as the exchange rate continued to nosedive.

It was sparked up by the inappropriate borrowing by the private sector in the previous years

8 0
3 years ago
TB MC Qu. 08-152 Minor Company installs a machine... Minor Company installs a machine in its factory at the beginning of the yea
Neko [114]

Answer:

The correct answer is "$54000".

Explanation:

According to the question,

Annual depreciation rate will be:

= \frac{100 \ percent}{5}

= 20 (%)

hence,

The depreciation as per double decline will be:

= 2\times Annual \ depreciation \ rate\times Beginning \ value

By putting the values, we get

= 2\times 20 \ percent\times 135000

= 54000 ($)

5 0
3 years ago
Other questions:
  • John: "I will sell you my laptop computer for $330." Mary: "Will you include the carrying case"? John: "Sold." a. There is a con
    9·1 answer
  • Rottino Company purchased a new machine on October 1, 2015, at a cost of $150,000. The company estimated that the machine will h
    5·1 answer
  • The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a.
    11·1 answer
  • Comment on the statement that "Independence is not easily achieved where an auditor is hired, paid, and fired by the same corpor
    9·1 answer
  • Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliat
    14·1 answer
  • You purchased XYZ stock at $50 per share. The stock is currently selling at $80. You expect the stock price to go up, but not 10
    11·1 answer
  • Trickle irrigation can be used to reduce
    5·1 answer
  • Conservative Bank offers loans at various interest rates, depending on the nature of the loan. Jake wants to borrow $200,000 for
    10·1 answer
  • 50 points + brainly
    5·1 answer
  • suppose that the publisher of this textbook sets the price of the textbook to $90, and the current resale value is $60. at this
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!