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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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As a salesperson asks questions about a prospect's transportation system, the prospect says, "What I really want is reliable tra
Helga [31]

Answer: Adaptive selling

Explanation: Adaptive selling could be referred to a flexible selling approach whereby the salesperson's response or actions are guided or determined by the type of consumer, the context or sales scenario and most especially the feedback received from the consumer. This means the kind of question and sales approach employed may be different depending on the consumer in question. In the context above, the sales person stopped asking question immediately the consumer hinted at requiring thee cheapest service, and showed him an evidence of what his company actually offers. The approach may be different for other consumers.

5 0
3 years ago
Question 5 of 12 An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies
Roman55 [17]

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had they were in the room alone

This is further explained below.

<h3>What is an insurance policy?</h3>

Both the insured person and his wife are engaged in an accident that occurs head-on. The husband passes away in an instant, and the wife follows him in passing 15 days later. The death benefit is paid out by the firm to the estate of the covered person. This suggests that the life insurance coverage would not have paid out if they were alone in the room.

In conclusion, A legal relationship exists between an insurance firm, often known as the insurer, and the person(s), business, or entity that is being covered under the terms of an insurance policy (the insured). Reading your policy gives you the ability to check that it satisfies your requirements and ensures that you comprehend both your duties and those of the insurance business in the event of a loss.

Read more about insurance policy

brainly.com/question/17479291

#SPJ1

4 0
2 years ago
12 26 greatest common fact​
kolbaska11 [484]

Answer:

2

Explanation:

6 0
3 years ago
Read 2 more answers
You work for a marketing consulting firm. The company has hired two interns for the summer. You have been appointed to mentor Hi
muminat

Answer:

A, B & D

Resist humor and sarcasm.

Be concise

Care about tone.

Explanation:

E-mail tips to give a new intern should be to resist humor and sarcasm, be concise and care about the tone of the email.

5 0
3 years ago
b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what
Nata [24]

Answer:

The current weekly wage rate in the labor market is:

$453.20

Explanation:

a) Data and Calculations:

The average hourly earnings of all employees in the United States stands at 11.33 U.S. dollars.

For 8 hours a day, this will translate to $90.64 ($11.33 * 8)

For 5 days a week, the wage rate will be $453.20 ($90.64 * 5) or ($11.33 * 40).

b) The above rate is for wage workers, who are usually paid per day or per week.  For salaried workers, the rate will be much higher and with some ranges, since salaries are not based on the factor of hourly or weekly rates.  

4 0
3 years ago
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