Four traits that will help you interact positively with others

You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of

mariarad [96]

Answer: 1.112375

Explanation:

Number of stocks = 20

Portfolio beta(Bp) = 1.1

Worth of stock to be sold(Ss) = 100,000

Portfolio worth(Wp) = 4,000,000

Beta of stock to be sold(Bs) = 0.9

Beta of other stock to be purchased(Bo) = 1.4

Therefore, new worth of portfolio (Np) :

(4,000,000 - 100,000) = 3,900,000

Bp = (Ss / Wp)Bs + (Np / Wp)Br

Where Br = Beta of what is left after the sale of the $100,000 stock

1.1 = (100,000 / 4,000,000)0.9 + (3,900,000/4,000,000)Br

1.1 = (0.025 × 0.9) + (0.975)Br

1.1 = 0.0225 + 0.975Br

1.1 - 0.0225 = 0.975Br

Br = 1.0775 / 0.975

Br = 1.105

New beta(Bn) :

(Ratio of sold stock × Bo) + (ratio of stock left × Br)

(100,000/4000000)1.4 + (3900000/4000000)1.105

Bn = (0.025 × 1.4) + (0.975 × 1.105)

Bn = 0.035 + 1.077375

Bn = 1.112375

7 0

3 years ago

The 4 basic marketing strategies are called the 4 P's: Product, Place, Price, and promotion. Another name of these four strategi

Annette [7]

Another name for the four strategies is the marketing mix

8 0

3 years ago

Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockho

iren [92.7K]

Answer:

Net cash provided by financing activities $1,195,000

Explanation:

The computation of the net cash provided by financing activities are as follows:

Cash flows from financing activities

Issue bonds $2,090,000

Issue preferred stock $795,000

Less: Purchase of treasury stock -$1,180,000

Less: Dividend paid to preferred stockholders -$510,000

Net cash provided by financing activities $1,195,000

4 0

3 years ago

When an individual obtains a car loan and makes all of the regular monthly payments, the sum of the payments made will exceed th

dmitriy555 [2]

Answer:

Correct option is (D)

Explanation:

One of the principles of money and banking is that time has value. Money worth today is not the same as it is worth tomorrow. For the same reason, money received today has more value than received tomorrow as the same could be invested elsewhere.

This is the reason why interest is charged on money paid later to compensate for the opportunity lost to invest elsewhere. As such, if car is obtained on loan, the installment paid includes the interest levied on loan. This is the reason that sum of installments are higher than the purchase price.

5 0

4 years ago

5. Hazelwood School District is located in Sleepy Hollow Township. It is being sued by several teachers who applied for teaching

UNO [17]

Answer:

The plaintiffs will probably win because the school district is clearly discriminating against African American teachers.

Title VII of the Civil Rights Act establishes that it is illegal to discriminate against job applicants based on race, ethnic background, gender, sexual preferences, religion, etc.

Since 15.4% of all certified teachers in the district are African Americans, you would expect that the number of teachers employed by the school district would be similar. It doesn't have to be exact, but it should be a closer number, not 1.8%.

7 0

4 years ago