Answer: ER(P) = ERX(WX) + ERY(WY)
16 = 13(1-WY) + 9(WY)
16 = 13 - 13WY + 9WY
16 = 13 - 4WY
4WY = 13-16
4WY = -3
WY = -3/4
WY = -0.75
WX = 1 - WY
WX = 1 - (-0.75)
WX = 1 + 0.75
WX = 1.75
The amount to be invested in stock Y = -0.75 x $106,000
= -$79,500
The Beta of the portfolio could be calculated using the formula:
BP = BX(WX) + BY(WY)
BP = 1.14(1.75) + 0.84(-0.75)
BP = 1.995 - 0.63
BP = 1.365
Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500
The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
Given that we want us to be in a healthy cash position at the end of the year.
We are require to find the way how can we will be in a healthy cash position at the end of the year.
A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.
Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
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the IRS has the authority to impose penalties on tax professionals.
The IRS is the Internal Revenue Service unit for the United States, which is in charge of collecting federal taxes in the United States and overseeing the Internal Revenue Code, the principal section of federal statutory tax legislation.
It is a division of the Treasury Department and is run by the Commissioner of Internal Revenue, who is picked by the US President for a five-year term. Among the responsibilities of the IRS are helping taxpayers with their taxes, pursuing and resolving cases of incorrect or fraudulent tax files, and managing a number of benefit programs, including the Affordable Care Act.
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Answer:
The correct answer is indirect bankruptcy costs.
Explanation:
Indirect costs are considered to be damage to the image and reputation of the company, lost investment opportunities, credit restrictions, conflicts with suppliers, loss of sales, conflicts with workers. Indirect costs are usually much higher than direct costs.
Answer:
OA
Explanation:
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