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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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Answer:

Given that,

Petty cash fund on September 1 = $250

Office Supplies = $73

Merchandise inventory = $137

Miscellaneous expenses = $22

Fund has a balance = $18

When Petty Cash fund is reimbursed,

the expenses incurred through Petty Cash are recorded by debiting those expense.

Therefore, all the expenses incurred to be debited from the accounts.

Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73.

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Relish Corp. is a famous fast food chain in the United States. However, increasing competition affects the company's market. Nic
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Answer:

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Explanation:

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The fact that we cannot have everything we want is caused by?
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Compute and Compare ROE, ROA, and RNOA
FinnZ [79.3K]

Answer:

ROE - 20.8%

ROA - 9.88%

RNOA - 20.33%

Explanation:

ROE = Net income / Average shareholder equity

Average shareholder equity = 48,633 + 46,878 / 2 = 47,770.50

ROE = 9,938 / 47,770.50

ROE = 20.8%

ROA = Net Income / Average Total Assets

Average total assets = 110,903 + 90,266 / 2 = 100,584.50

ROA = 9,938 / 100,584.50

ROA = 9.88%

RNOA = NOPAT / Average net Operating Assets

Average net Operating Assets = 56,535 + 51,447 / 2 = 53,991

NOPAT = Net Operating income before tax - Tax expense

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A company just starting business made the following four inventory purchases in June:June 1 150 units $ 390 June 10 200 units 58
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