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andrew11 [14]
3 years ago
6

The standard deviation of the market-index portfolio is 25%. Stock A has a beta of 1.80 and a residual standard deviation of 35%

. a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Business
1 answer:
kap26 [50]3 years ago
7 0

Answer:

0.2925

Explanation:

Total variance = Systematic variance + Residual variance

= (β^2)Var(rM) + Var(e)

Where beta β= 1.80 and

residual standard deviation σ(e) = 0.35,

variance = (1.80^2)×0.25^2 + 0.3^2= .

=3.24 × 0.0625 + 0.09

= 0.2925

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Schach [20]

Answer:

$100,000

Explanation:

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Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

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3 years ago
When it is reported that a nation is experiencing a "balance of payments deficit," this is best interpreted to mean that the nat
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<span>When it is reported that a nation is experiencing a "balance of payments deficit," this is best interpreted to mean that the nation is experiencing? If it is reported that the nation is experiencing a balance of payments deific, the country is importing more goods, services and capital than it is exporting. When this happens, the nation has to borrow funds and items from other countries to help pay for what they are importing until the have the cash funds to pay for them, themselves. When this starts the happen, the nation that this is hurting should try and balance their payments and monitor transactions better to eliminate this in the future. </span>
8 0
2 years ago
Read 2 more answers
The WPC Sports Company has noted that the size of individual "customer order" is normally distributed with a mean of $100 and st
nikdorinn [45]

Answer:

Standard error of the mean = 3

Explanation:

Given:

Mean Distribution = $100

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Standard error of the mean = 12 / 4

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7 0
2 years ago
Luis runs a bakery that offers only takeaway service. His customers visit his residence and watch him prepare their order. They
Tju [1.3M]

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Providing personal customer service

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8 0
3 years ago
The best business writing is purposeful, economical, and ________. a. feelings oriented b. technical c. revenue driven d. audien
alexgriva [62]

Answer: (D) Audience oriented

Explanation:

 The effective business writing is should be economical, audience oriented and also purposeful to the public so that we can easily explain about the main objective of the topic.

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