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ASHA 777 [7]
3 years ago
5

Bob has a $50,000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also h

as a $50,000 portfolio, but it has a beta of 0.8, an expected return of 9.2%, and a standard deviation that is also 25%. The correlation coefficient, r, between Bob's and Becky's portfolios is zero. If Bob and Becky marry and combine their portfolios, which of the following best describes their combined $100,000 portfolio?
Business
1 answer:
4vir4ik [10]3 years ago
5 0

Answer:

Combined Beta =  1

Combined return = 10%

Explanation:

given data

stock portfolio = $50,000

beta = 1.2

expected return = 10.8%

beta = 0.8

expected return = 9.2%

standard deviation = 25%

to find out

combination

solution

we get here first Combined Beta that is express as

Combined Beta = 1.2 × 50% + 0.8 × 50%

Combined Beta =  1

and

Combined return will be here

Combined return = 10.8 × 50% + 9.2 × 50%

Combined return = 10%

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7 0
3 years ago
Do you believe self-regulatory practices are sufficient without governmental regulation to protect consumers? If not, what type
kaheart [24]

Self-regulatory practice is like serving Lion 50gms of meat after 10 days without any protection.It will go for a kill and Government intervention is highly required. Buying consumer goods,land and property, corporation and technology and locomotive.It is for working class, middle class , lower middle class.

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6 0
3 years ago
Describe what an insurance company does and sells without using the word insurance
Crank
If something goes wrong, the company will make sure you're not completely screwed.
8 0
3 years ago
A company can shorten its cash cycle by: __________
Dafna1 [17]

Answer:

None of the above

Explanation:

Companies can shorten their cash cycles by turning over their inventory faster. The quicker a company sells its goods, the sooner it takes in cash from cash and credit card sales and begins its accounts receivable aging. Inventory turnover has no impact on the cash cycles of service companies with no inventory.

5 0
3 years ago
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Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

Explanation:

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Amount realized = 600 + 200 + 0 -0

= $800

Adjusted basis = initial basis – cost recovery deductions

Adjusted basis = 2500-2200 = $300

Gain or loss realized = amount realized – adjusted basis = 800-300

= $500

Therefore Darla's amount realized on the sale is $800 and the adjusted basis in the assets sold is $300, producing a realized gain on the sale of $500

8 0
3 years ago
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