1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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
¿Que es una fuente luminosa?
GrogVix [38]
Light sources are laser lamps and leds
6 0
3 years ago
Match each certification to its purpose
sveta [45]
First one7,6,65,and last 3
5 0
3 years ago
Read 2 more answers
The standard costs and actual costs for direct materials for the manufacture of 1,910 actual units of product are as follows: St
vesna_86 [32]

Answer:

$774 unfavorable

Explanation:

The computation of the direct material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $8.60 × (1,910 kilograms - 2,000 kilograms)

= $8.60 × 90 kilograms

= $774 unfavorable

Since it is unfavorable as it derives that actual quantity is more than the standard quantity and in the case of favorable, the actual quantity is less than the standard quantity

6 0
3 years ago
If interest rates increase from 8% to 9½%, we would expect to see an
____ [38]

Answer:

a decrease in the demand for money

Explanation:

As the money is now more expensive because, holding cash in hand means not capitalize with the interest, the agents (families and business) will try to not have liquid money but, invest to achieve the better yields.

6 0
4 years ago
Offshoring means outsourcing to an international or foreign firm. Group of answer choices True False
BartSMP [9]

Answer:

true

Explanation:

i believe forgive me if wrong

6 0
3 years ago
Read 2 more answers
Other questions:
  • The person who receives financial protection from a life insurance plan is called
    13·1 answer
  • If the investment demand curve is vertical, a decrease in the interest rate will __________ investment, and therefore aggregate
    8·1 answer
  • Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:
    11·1 answer
  • Prepare an income statement for Bill’s Extreme Bowling, Inc., for the month ended July 31. (This income statement would be consi
    10·1 answer
  • Self-imposed budgets typically are:
    15·1 answer
  • 2. Consider this game described in strategic form, where Player 1 chooses strategy, A,B,C, or D and Player 2 chooses W,X,Y or Z.
    8·1 answer
  • (True) or (False)? The most common method companies use is double-declining balance, because it allows companies to recognize fo
    7·1 answer
  • Santos International is a beauty salon in Texas. The salon is conveniently located in mid-town, and there is plenty of parking.
    15·1 answer
  • What is transparency
    11·1 answer
  • Choose the correct alternative regarding tax revenue:
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!