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]
3 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]3 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
The legal liability of a common carrier for damage to or loss of goods in its custody
Vikentia [17]

Answer:

The correct option is (d).

is quite strict, with the carrier being liable for all losses except those caused by certain specified perils.

Explanation:

The legal liability of a common carrier for damage to or loss of goods in its custody is that he takes full responsibility for the goods except those caused by certain specified perils.

3 0
4 years ago
What is the difference between explicit collusion and implicit​ collusion? Unlike explicit​ collusion, implicit collusion
lesya [120]

Answer:

The basic difference between both are explained below.

Explanation:

Explicit collusion is where firms meet and agree to charge the same price, and an example of implicit collusion is price leadership. Unlike explicit collusion, implicit collusion unlike explicit collusion, implicit collusion is where firms signal to each other without actually meeting and agreeing to charge the same price.

Unlike explicit collusion, wherever the occurrence of an accommodation that would lend ammunition for an antitrust court case might be unscrewed, implied collusion is challenging to document as well as to verify. Implicit collusion frequently seems to be nothing more than all firms individually responding to shifting market circumstances.

4 0
4 years ago
Examples of tangible and intangible
Rashid [163]

Answer:  Tangible: <em>cash, inventory, vehicles, equipment, buildings and investments</em>

Intangible:  <em>goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists</em>

<em>Hope this helps </em>

<em>Plz mark brainlest</em>

<em />

5 0
4 years ago
Petnro, a bike manufacturing firm based in the U.S., operates bike manufacturing plants in China, Japan, Taiwan, and Singapore u
Hunter-Best [27]

Answer:

The methods for conducting global business which petnro has used in the given scenario is :

C) The formation of wholly owned affiliates

Explanation:

In the question it has been mentioned that their is a bike manufacturing firm which is based in u.s. and operates in various other countries under a different name i.e. BikMe.

So, the scenario is like the parent company is receiving all the profits which have been made by all these facilities and also controls different segments of the plants.

Therefore,the methods for conducting global business which petnro has used in the given scenario is :

C) The formation of wholly owned affiliates

Role of global marketing in international business:

A development in the global marketing strategy helps in growing of a business. Marketing globally is the first way to improving your company globally all over the market.

Another benefit is that the customer awareness increases.

Global strategy example : Any company who is delivering the same quality and variety of product is known as the global strategy.

For example: Gucci delivers all its products globally in different countries.

As for example the company here mentioned is also developing its global strategy.

7 0
3 years ago
A politician is interested in implementing a statewide welfare reform program. By providing welfare recipients with extensive jo
Allisa [31]

Answer: (D) Efficiency

Explanation:

The evaluation of the efficiency is the process in which we concerned about the efficiency of system so that it produced the desirable result.

We can also evaluate the efficiency by using the ratio of the output of the system to the input in the form of quantitative and the qualitative.

According to the question, the researcher work is basically refers evaluation of the efficiency as the implementation of the welfare program and the researcher argues are basically based on the efficiency evaluation.

Therefore, Option (D) is correct.

8 0
3 years ago
Other questions:
  • Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110 per pound. Last month,
    9·1 answer
  • The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 28, 2010. On
    15·1 answer
  • When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience
    13·2 answers
  • Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Mater
    7·1 answer
  • 1.You should document your sources in all of the following situations except A. when using someone else's unique idea. B. when u
    14·1 answer
  • Refer to the following selected financial information from our company. Compute the company's profit margin for Year 2.
    13·1 answer
  • Carol is a vice president for sales and marketing at her company. She conducts a survey asking customers their impressions of th
    8·1 answer
  • Wat is de boekwaarde
    5·2 answers
  • Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted
    12·1 answer
  • Do you agree that Project Integration knowledge domain is the most important domain for project managers
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!