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s2008m [1.1K]
3 years ago
11

Portfolio A has a beta of 1.0 and an expected return of 22%. Portfolio B has a beta of 2.0 and an expected return of 17%. The ri

sk-free rate of return is 2%. Is there an opportunity for arbitrage: (Please explain your answer)
Business
1 answer:
ArbitrLikvidat [17]3 years ago
4 0

Answer:

Yes, there is an opportunity.

Explanation:

Beta is an indicator of the risk of any portfolio.  The higher beta, the greater the risk. Therefore, the expected return of that portfolio should be higher.

Portfolio B has a higher Beta than portfolio A, but a lower expected return, so we say that the portfolio B is more expensive than it's value. So, there is an opportunity for arbitrage. You should sell the protfolio B and buy the portfolio A, and win the difference between both operations, with no risk.

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The answer that best fits the blank provided above is this: A COMPETITIVE ADVANTAGE. When we say competitive advantage, this is when this fast food restaurant gains that position that is ahead of the rest. This is because of their low prices for larger quantities. Hope this helps.
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Gloria's employer deducted 20 percent of her pay in the month of january due to personal problems he had with her. under the lil
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180 days of the most recent paycheck reflecting the discrepancy.

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3 years ago
A specialist in the HR department is invited to promote the cybersecurity program in community schools. Which three topics would
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Answer:

The answer is below

Explanation:

In a given situation like the one presented in the question, it is believed and expected that three topics in which the Human Resources specialist in the area of the cybersecurity program, would emphasize in the presentation to draw students to this field are the following:

1. It has a high earning potential

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3 years ago
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t
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Answer and Explanation:

The preparation of the income statement is presented below:

<u>Particulars        Amount </u>

Revenue           $160,000

Less:

Rental Costs       $30,000

Variable Costs     $50,000

Depreciation       $10,000

Profit before tax $70,000

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6 0
2 years ago
Which is not an effective principle for preparing main points? A. Balance the amount of time given to each main point B. Make su
guajiro [1.7K]

Answer:

B. Make sure each main point is brief

Explanation:

Based on the answers provided within the question it can be said that answer that is not an effective principle for preparing main points is making sure each main point is brief. Main points need to be emphasized and thoroughly detailed as they are the most important aspects in a presentation. Only the subtopics may be made brief.

5 0
3 years ago
Read 2 more answers
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