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Elodia [21]
3 years ago
15

For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio i

s less than the weighted average of the betas of the individual stocks. b. The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation. c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks. d. The riskiness of the portfolio is the same as the riskiness of each stock if it was held in isolation. e. The beta of the portfolio is larger than the weighted average of the betas of the individual stocks.
Business
1 answer:
Paraphin [41]3 years ago
8 0

Answer:

c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.

Explanation:

The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.

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Catering Corp. reported free cash flows for 2008 of $8.14 million and investment in operating capital of $2.14 million. Catering
Neko [114]

Answer:

Catering's 2008 EBIT is $11.47 million

Explanation:

Operating cash flow = EBIT + Depreciation – Taxes

Also the same as EBIT = Operating cash flow - Depreciation + Taxes

When Operating cash flow = Free cash flows + Investment in operating capital

OCF = $8.14 million + $2.14 m illion

Operating cash flow = 10.28 million

EBIT = Operating cash flow - Depreciation + Taxes  

EBIT = 10.28 million - 0.95 million + 2.1 4 million

EBIT = $11.47 million

Catering's 2008 EBIT is $11.47 million

6 0
3 years ago
Presented below are a number of transactions. Determine whether each transaction affects common stock, dividends, revenue, expen
marin [14]

Answer:

(a) It affects expense account.

(b) It affects Revenue account.

(c) It affects expense account.

(d) It affects Expense account.

(e) It affects Dividend account.

(f) It affects Revenue account.

(g)  It affects Expense account.

(h)  It does not affect stockholders’ equity because purchase of equipment for cash doesn't affect stockholders’ equity.

(i) It affects Common stock account.

4 0
3 years ago
Dustup, a cleaning products company, was trying to revive its old wood floor waxing product. It began offering an augmented serv
mylen [45]

Answer:

Dustup forgot to the consumers if the add-on will give them more satisfaction from using their product.  

Explanation:

The market is always king. Getting first-hand information about what consumers need and how they need it is the best way to go about creating a product or modifying an existing one to become more profitable.

The removal of the brochures from the bottles showed that shoppers didn't necessarily want their product. What they wanted was to be able to make contact with the company and get more information on how to revive their old wooden floors.

Cheers!

7 0
3 years ago
The most important factor in determining whether a research collaboration will be successful is:
Alex

<u>Answer</u>:

The most important factor in determining whether a research collaboration will be successful is: B) Whether there is ongoing communication among the team members about their goals and responsibilities.

<u>Explanation</u>:

The research that involves participants from multiple organizations working together to achieve common goals is known as Collaborative Research. This type of research technique is an efficient and more effective way to achieve better results in a short time.

Various factors determine the success of collaborative research, such as the availability of resources, technology, relevant knowledge of the team members, but, the most important factor which determines success is an effective communication between the multiple research teams. If there is no proper communication between the teams, then there will be a lack of coordination, which is harmful for any collaboration.

Therefore, statement B is most suitable.

4 0
3 years ago
Have you ever been disciplined for or the subject of an administrative order relating to conduct or practices involving any aspe
crimeas [40]

Answer:

1. Does it mean if I have been taught any financial information?  

NO

This question wants to know if you have been DISCIPLINED, PUNISHED OR PENALIZED for any finance-related fraud

Explanation:

Have you ever been disciplined for or the subject of an administrative order relating to conduct or practices involving any aspect of the financial services, insurance, securities or real estate industries or any other licensed industry or profession?

1. Does it mean if I have been taught any financial information?  

NO

This question wants to know if you have been DISCIPLINED, PUNISHED OR PENALIZED for any finance-related fraud

2. I have worked as a teller. then do I have to say yes??  

YES, but what they want to know is ''while you were a teller did you receive any query for fraud'' or have you been sanctioned for acting wrongly because you wanted financial gain? Did you change records to show an improved picture?

3. Is this question a positive question or negative?  

This question is positive because it shows you are seeking for an opportunity for work or travel.

6 0
3 years ago
Read 2 more answers
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