Answer: b. The beta of the portfolio is higher than the highest of the three betas
Explanation:
The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.
For instance.
3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.
A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.
The portfolio beta will be;
= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)
= 1.98
Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.
Answer:
$135,000
Explanation:
The realized gain can be calculated as under:
Realized Gain = Market Value received - Adjusted Basis
Here
Market Value received is $375,000 (350k + 25k)
Adjusted Basis $240,000
By putting values, we have:
Realized Gain = $375,000 - $240,000 = $135,000
Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
The answer to this question is <span>Business continuity plan (BCP)
</span><span>Business continuity plan (BCP) refers to the plan that made to notify all the risks and threats that's currently faced by the company and allocate company's resource properly to avoid potential disastrous events (such us information leak in Tom's case)</span>
Answer:
b. advertising regulations differ in other countries, including advertising to children.
Explanation:
Cecilia decided tolo introduce the her cereal advert in Europe, where she feels it will be innovative.
Thai was done to avoid competing in the mature U.S market.
It will be important for Cecilia to consider the advertising regulations on Europe.
There can be differences in what is considered appropriate in an advertisement in Europe.
She will need to ensure the content of her adverts complies with what is deemed appropriate content in Europe