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ivolga24 [154]
3 years ago
14

Bill Dukes has $100,000 invested in a 2 stock portfolio; $75,000 is invested in Stock X and the remainder is invested in Stock Y

. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?
A. 1.30
B. 1.00
C. 0.98
D. 1.39
E. 1.44
Business
1 answer:
Marta_Voda [28]3 years ago
3 0

Answer:

A. 1.30

Explanation:

In order to find portfolio beta we will multiply each individual stock's beta with its weight in the portfolio. Stock X has a weight of 75%(75,000/100,000) and a Beta of 1.5. Stock Y has a weight of 25%(25,000/100,000) and a Beta of 0.7.

Portfolio Beta = (1.5*0.75)+(0.70*0.25)=1.3

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Scenario:
Misha Larkins [42]

Answer:

b. substitutes

b. competitive intelligence.

Explanation:

In the context, Paul and his wife wishes to open up a new restaurant in Beaufort and did much of analysis and research before taking any decision and studying the restaurant industry market.

The factor that Paul have considered in analyzing the competitive environment is the substitutes. The competitive environment as described by Michael Porter includes customers, substitutes, suppliers, new entrants, compliments and other rival firms.

The information Paul has collected in the competition analysis can be referred to -- competitive intelligence.

Competitive intelligence may be defined as the information that is necessary in deciding how best to manage in the competitive environment that the managers have identified.

3 0
2 years ago
1.) If it looks like a bank won't meet the Federal Reserve Bank's reserve requirement, normally it will first turn to the: (a) o
Arada [10]

Answer: A. other member banks and borrow money at the federal funds rate

Explanation: The first thing a Bank will do when it won't be able to meet the federal reserve Bank's requirement, is to borrow money at the federal funds rate from other Banks.

Federal Reserve Bank's reserve requirement or cash reserve ratio, it the minimum amount of reserve a commercial bank is expected to hold. It is practice by most Central Banks in the world but not all. A Bank that has excess of the minimum is said to have surplus reserve.

4 0
2 years ago
A retail store: a. owes its customers duties as licensees. b. need not protect its customers against problems it has knowledge o
siniylev [52]

Answer:

d. Has no duty to protect customers from criminal conduct by third parties.

Explanation:

A retail store has no duty to protect customers from criminal conduct by third parties. A retail store is responsible for facilitating its customers by offering them value in their products and services, treating them fairly and giving them respect, providing them with excellent shopping experience and involving them in co-creation process. Retail store has no liability if customers has faced any kind of criminal conduct or activity by a third party, it doesn't come under the umbrella of their responsibility and jurisdiction. Customer has to take care when they are dealing with the third party because that particular retail store has nothing to do with it if something bad or any unforeseen circumstances occur.

3 0
3 years ago
Assume that the required reserve ratio is 10 percent, banks keep no excess reserves and borrowers deposit all loans made by bank
____ [38]

Answer:

$1,000

Explanation:

The computation of the increase in the money supply is shown below:

But before that the multiplier is

= 1 ÷ required reserve ratio

= 1 ÷ 0.10

= 10

Now the increase in the money supply is

= Multiplier × saving in cash at home

= 10 × $100

= $1,000

hence, the above represent the answer and the same would be relevant

6 0
2 years ago
Wood Manufacturing is a small textile manufacturer using machineminushours as the​ single, plantminuswide predetermined cost dri
sergey [27]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Manufacturing overhead costs ​$30,000

Machine-hours= ​100,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 30,000/100,000= $0.3 per machine hour.

4 0
3 years ago
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