Answer:
The beta of stock T is 1.82
Explanation:
The portfolio beta is made up of the weighted average of the individual stock betas in the portfolio.
The formula for portfolio beta is,
Portfolio beta = wA * beta of A + wB * beta of B + ... + wX * beta of X
The weight of stock T in the portfolio is = 1 - (0.11 + 0.56) = 0.33 or 33%
Let beta of Stock T be x. The beta of Stock T is:
1.47 = 0.11 * 0.84 + 0.56 * 1.39 + 0.33 * x
1.47 = 0.0924 + 0.7784 + 0.33x
1.47 - 0.0924 - 0.7784 = 0.33x
0.5992 / 0.33 = x
x = 1.815 rounded off to 1.82
Understanding the consumer's learning helps design a marketing strategy by identifying the patterns that can be created by the consumers. A business should learn to gather the common interest that they would want on a product which it can provide. Uniqueness, quality, and usability should be targeted so they can easily attract them. It can also be reinforced through advertisements that would draw them on acquiring the products.
Answer: To afford to retire
Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.
As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.
However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.
