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
Mice21 [21]
3 years ago
11

You currently own a portfolio valued at $52,000 that has a beta of 1.16. you have another $10,000 to invest and would like to in

vest it in a manner such that the portfolio beta decreases to 1.15. what does the beta of the new investment have to be?

Business
1 answer:
Zinaida [17]3 years ago
8 0

The beta of the new investment must be 1.098.

We need to use the concept of weighted averages to solve this problem.

We find the ratios of the dollar value of existing to the total new portfolio and additional investments to the total new portfolio and find the weights.

We then find the product of the beta of the existing portfolio and its respective weight calculated in the earlier step, with the given data.

We derive the product of the additional investment and beta by subtracting the answer from the earlier step from the new portfolio's beta (1.15).

Then we work backwards to arrive at the the beta for the additional investment.

You might be interested in
The managers in Julio's company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when
Evgesh-ka [11]

Answer:

Learning.

Explanation:

In this scenario, the managers in Julio's company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when an out-of-the box idea leads to organizational improvements.

Hence, Julio's company is an example of a learning organization.

A learning organization is one which is typically characterized by creating an enabling environment for growth, training, and development of its employees. This opportunity and incentives help employees to engage in critical and creative thinking, research, and development. Consequently, employees would become more confident, brilliant, intelligent, knowledgeable and professionals in their assigned positions or roles, thus helping the organization to achieve its aim, goals and objectives.

<em>In a nutshell, this ultimately implies that it's very important and necessary that organizations sponsor brainstorming sessions and reward employees awesomely, when an out-of-the box idea leads to organizational improvements.</em>

3 0
3 years ago
Chaco Company’s trial was in balance at the end of the period and showed the following accounts: Accounts Payable 25,200 Cash 40
Alecsey [184]

Answer:

$92,400

Explanation:

Balance of the credit column on Chaco’s trial balance.

The Total credit column balance will be:

Accounts payable $25,200

Common Stock $21,200

Notes payable $46,000

We are going to add them up

Hence:

Total credit balance =

$25,200 + $21,200 + $46,000

Total credit balance = $92,400

5 0
3 years ago
How has the great recession of 2008dash–2009 affected marketers in terms of consumer​ attitudes?
Black_prince [1.1K]
The answer is: <span>Consumers are showing an enthusiasm for frugality(cautious in spending)
During the great recession of 2008, the value of investments that most people have been significantly dropped. To ensure their financial safety, Consumer attitudes reacted into cautious spending because they're not sure when the market will recover from the situation.</span>
5 0
3 years ago
Vera Paper's stock has a beta of 1.40, and its required return is 12.00%. Dell Dairy's stock has a beta of 0.80. If the
jeka57 [31]

The required rate of return on the stock of Dell company is come out to be 8.89%.

<h3>What is a stock?</h3>

Stock represents the number of shares being owned by an investor in the company on which it gets the dividends.

Given values for step 1:

The required rate of return: 12%

Beta factor: 1.40

Risk-free rate: 4.75%

<u>Step-1</u> Computation of market risk premium:

\rm\ Market \rm\ risk \rm\ premium=\frac{\rm\ Required \rm\ rate \rm\ of \rm\ return-\rm\ Risk \rm\ free \rm\ rate}{\rm\ Beta \rm\ factor} \\\rm\ Market \rm\ risk \rm\ premium=\frac{\$12\%-4.75\%}{1.40} \\\rm\ Market \rm\ risk \rm\ premium=5.18\%

Given values for step 2:

Market risk premium: 5.18%

Beta factor: 0.80

Risk-free rate: 4.75%

<u>Step-2</u> Computation of required rate of return:

\rm\ Required  \rm\ rate  \rm\ of  \rm\ return = \rm\ Risk  \rm\ free  \rm\ rate + ( \rm\ Market \rm\ risk \rm\ premium \times\ Beta factor) \\ \rm\ Required  \rm\ rate  \rm\ of  \rm\ return=4.75\% + ( 5.18\% \times\ 0.80)\\ \rm\ Required  \rm\ rate  \rm\ of  \rm\ return=8.89\%

Therefore, the return of 8.89% comes out to be the required rate of return for the stock of Dell Company.

Learn more about the required rate of return in the related link:

brainly.com/question/14667431

#SPJ1

3 0
2 years ago
Which of the following is a benefit of search engine marketing​
Drupady [299]

Group of answer choices.

A. Reach out to potential customers actively looking for your product or service

B. Create different types of ad formats to show to potential customers

C. Target people based on their interests and habits

D. SEM is a lot cheaper than any other advertising medium

Answer:

A. Reach out to potential customers actively looking for your product or service

Explanation:

A pre-service strategy refers to the process of planning and analyzing activities that enable a business entity to identify and determine its end users or consumers and the uniquely defined services that will be offered to these  customers as they enter into the system. The pre-service strategies includes identifying the following; target market, design, branding, market research.

Search engine optimization (SEO) can be defined as a strategic process which typically involves improving and maximizing the quantity and quality of the number of visitors (website traffics) to a particular website by making it appear topmost among the list of results from a search engine such as Goo-gle, Bing, Yah-oo etc.

This ultimately implies that, search engine optimization (SEO) helps individuals and business firms to maximize the amount of traffic generated by their website i.e strategically placing their website at the top of the results returned by a search engine through the use of algorithms, keywords and phrases, hierarchy, website updates etc.

Search engine marketing (SEM) can be defined as a scalable and an inexpensive form of digital marketing that avails businesses the ability or opportunity to advertise their goods and services using search engine services such as Bing, Go-ogle etc.

Hence, a benefit of search engine marketing (SEM) through search engine optimization is that it helps you to reach out to potential customers actively looking for your product or service.

3 0
2 years ago
Other questions:
  • Hilton Hotels wishes to conduct a study on the determinants of brand loyalty among Hilton Hotel customers. The Hilton organizati
    11·1 answer
  • What is a negative outcome of E-commerce?
    6·1 answer
  • True or False The best sales organizations: Integrate sales with other business functions. Focus on key strategic issues. Create
    10·1 answer
  • How do the pricing strategies for corporations differ from nonprofit organizations?
    6·1 answer
  • Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem
    13·1 answer
  • Excessive alcohol consumption can lead to liver failure, as well as deterioration of other organs. Suppose the government has op
    11·1 answer
  • When does a conflict of interest occur???
    14·1 answer
  • Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the s
    15·1 answer
  • Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2020, costing $21 each. Purchases of part M.O. during May were as fo
    9·1 answer
  • The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjus
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!