Answer:
the new portfolio beta is 1.11
Explanation:
The computation of the new portfolio beta is as follows;
The Beta of the new portfolio is
= (Portfolio beta × given percenatge) + (beta of the stock × given percentage)
= (1.16 × 0.9) + (0.69 × 0.1)
= 1.11
hence, the new portfolio beta is 1.11
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
due to the amount of employment requests , they need a uniform document to organize records and identify candidates' skills
Explanation:
Answer:
P0 = $28
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected for the next year
- r is the required rate of return
We first need to calculate r using the CAPM. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the market rate of return
r = 0.05 + 1.4 * (0.15 - 0.05)
r = 0.19 or 19%
Now we can calculate the price of the stock today.
P0 = 3.92 / (0.19 - 0.05)
P0 = $28
Answer: Innovators
Explanation:
According to the given question, the Roger is belong to the innovators category on the basis of the given diffusion of innovation context as innovators are one of the divergent thinker.
The innovators are not influenced by the other opinions about the market products as they search themselves about the specification and the features of the specific products on internet.
The innovators is known as the risk taking users in the market as they first experience the product by buying it and the give any review.
Therefore, Innovators is the correct answer.
