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puteri [66]
3 years ago
7

Stock A has a beta of 1.2, and stock B has a beta of 1. The returns of stock A are ______ sensitive to changes in the market tha

n are the returns of stock B. A. 20% more B. slightly more C. 20% less D. slightly less
Business
1 answer:
stellarik [79]3 years ago
3 0

Answer:

Option A, 20% more, is the right answer.

Explanation:

Given the beta value of stock A =  1.2

The beta value of stock B = 1

The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A  is large by 20% as compared to the beta of stock B.

It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B

= (1.2 – 1) / 1

= 0.2 or  20%

Therefore, the return will also be more than 20%.

Thus, option A. 20% more is correct.

You might be interested in
. Qiang, an Asian employee, working at Rapid Fire Inc., is terminated on the grounds that he is homosexual. He wants to file a d
erica [24]

Answer:

he was discriminated solely based on his sexual orientation.

Explanation:

The Title VII of the Civil Rights Act of 1964 stated that all employers in united states are prohibited to discriminate their employees based on race, religion, gender, national origin, and sexual orientation.

You do not need to be married for your sexual orientation to be acknowledged by the The Title VII of the Civil Rights Act of 1964  . You just need to proof that any of the factors above are the reason why you're discriminated against.

In Qiang case, he could tried to find witness by talking to other employees or find a recorded email/messages that indicates his boss mistreatment toward him. If there are enough employees who came out as witnesses, he could build a strong enough case to gain support in the court.

5 0
3 years ago
Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th
Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from  treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation          Debit                  Credit

Cash                                        $18,000

Treasury stock                                                      $14,000      

Paid in Capital from Treasury STOCK                  $4,000

Calculation

CASH = Number of  shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of  shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

6 0
3 years ago
A 4.9 percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par va
NeTakaya

Answer:

$1,049

Explanation:

Data given in the question

Par value = $1,000

Interest rate = 4.9%

Time period = 10 years

So, by considering the above information, the price paid to the bond holder is

= Par value + Par value × rate of interest

= $1,000 + $1,000 × 4.9%

= $1,000 + $49

= $1,049

Hence. the price paid to the bond holder is $1,049

4 0
3 years ago
A flying squid (family Ommastrephidae) is able to "jump" off the surface of the sea by taking water into its body cavity and the
Zielflug [23.3K]

Answer: V=7.43m/s

d =2.82m

Explanation:

a) For the first part, the initial velocity immediately after ejection, by using momentum conservation

before ejection, the momentum of the squid/water system is zero

there are no external forces acting on the system at the moment of ejection, so we can find the speed of the squid by noting

momentum before ejection = momentum after ejection

0 = M1U + M2V

0=-0.26 kg x 20 m/s + 0.7kg x V

where the speed of the water is taken as the negative sign, and V is the speed of the squid right after ejection, solving for V we get

V=7.43m/s

B. we use the equation vf^²=v0^²+2ad

where vf=final velocity = 0 since velocity is zero at motion's apex

v0=initial velocity = 7.43m/s

a = acceleration = -9.8m/s/s

d=height (to be found)

Therefore,

0=7.43^²+2(-9.8)d

Mathematically, it becomes

d=7.43^²/2(9.8)= 2.82m

d = 2.82m

4 0
4 years ago
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
shusha [124]

Answer:

12 months

Explanation:

The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that  12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.

After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.

7 0
3 years ago
Read 2 more answers
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