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Ivanshal [37]
3 years ago
5

You hear on the news that the​ S&P 500 was down 2.6 % today relative to the​ risk-free rate​ (the market's excess return was

negative 2.6 % ). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If​ Zynga's beta is 1.3​, what is your best guess as to​ Zynga's excess return​ today? b. If Proctor and​ Gamble's beta is 0.4​, what is your best guess as to​ P&G's excess return​ today?
Business
1 answer:
Paul [167]3 years ago
8 0

Answer:

a.

Excess return for Zynga today will be -3.38%

b.

Excess return on P&G today will be -1.04%

Explanation:

The excess return is the return earned above/beyond the benchmark return. This benchmark can be set at either the risk free rate or any other stock or portfolio's return.

The return on a stock is usually calculated using the CAPM equation. The CAPM considers risk free rate, the return on market and the stock's beta to calculate the expected return on a stock.

The market always has a beta of 1. Beta is the measure of the volatility of stock returns. If the excess return on the market falls or rises, the effect of this on a stock's excess return will be based on its beta.

a.

The excess return of Zynga today will be =  -2.6% * 1.3   = -3.38%

b.

The excess return of P&G today will be =  -2.6% * 0.4   = -1.04%

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Improvement of social services to a specific area

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The custodial bank (located in the home country of the issuer) of an American Depository Receipt
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Answer: c. Performs trading in the U.S. on behalf of the ADR holders

Explanation:

depository receipt are issued to individuals, investors or companies as a symbol of an ordinary shares to global investor, by keeping the shares under the custody of a 'Domestic Custodian Bank'. Domestic Custodian Bank is a bank that’s specialized in and responsible for safeguarding a firm's or individual's financial assets. This assets are usually traded in domestic market or what is known as local market that is only within the USA stock exchange.

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4 years ago
Read 2 more answers
When a good is nonexcludable: a. a free-rider problem will exist. b. consumers will pay the producers the market price for the g
Rashid [163]

Answer:

a free-rider problem will exist.

Explanation:

Non-Excluded goods are public goods that cannot exclude the use of a particular individual or group of persons. As a result, it is almost impossible to limit the consumption these types of goods. The Non-excludable goods contains:  

1)Common pool resources: fish stocks, timber, coal

2)Public Goods: air, national defense, television

The free rider problem is an economic phenomenon that manifests itself in the fact that the consumer of the public good tries to avoid paying it.The free rider problem arises when an individual is consciously unwilling to pay for the public good, expecting to receive benefits without any payment. One of the striking examples of the manifestation of the free rider problem that is connected to the provision of public goods is the phenomenon of evading of the citizens from paying taxes.

7 0
4 years ago
Through a certain transaction, coffee café inc. acquires all of the shares of deli corporation for some of coffee's shares. bot
Mama L [17]

Through a certain transaction,coffee acquires all of the shares of Deli corporation for some of coffee's shares, both coffee and Deli continue to exist, this is a merger.

Given an incomplete sentence related to a transaction between Coffee Inc. and Deli.

We are required to fill the blank with the appropriate term.

The appropriate term which will fill the sentence is "merger".

A merger is basically an agreement that unites two existing companies into one new company. There are many types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions are commonly done to increase a company's reach, expand into new segments, or gain market share.

Hence the term that is to filled in the sentence is merger.

Learn more about merger at brainly.com/question/1977165

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2 years ago
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52,000. Based on its ownersh
Arlecino [84]

Answer:

The Total amount is shown in the income statement $34,240

Explanation:

The computation of the amount that should be presented in the 2020 income statement is shown below:

Dividend collected by Howdy Doody corporation (18% of $68,000) $12,240

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The Total amount is shown in the income statement $34,240

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