Answer:
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Explanation:
In order to calculate the average beta of the new stocks to achieve the target required rate of return we would have to calculate the following:
average beta of the new stocks = (Required Beta-(portfolio /total fund) *old beta)/(additional portfolio/total fund)
To calculate the Required Beta we would have to use the formula of Required rate of return as follows:
Required rate of return=Risk free return + (market risk premium)*beta
0.13=0.0425+(0.06*Required Beta)
Required Beta = (0.13-0.0425)/0.06
Required Beta = 1.45
Therefore, average beta of the new stocks =(1.45-($40/$100) *1)/($60/$100)
average beta of the new stocks =1.05/0.6
average beta of the new stocks =1.75
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
HR organizations, mainly.
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hope this helped
Answer: like what type of three ways are they talking about ?...??.?
Explanation:
Buy what u need when u need it not what u want when u want my dad always said
Is a method by which a business organization can be dissolved
To put it simply , continuity factor is an assumption that the business will always be able to operate overtime. But the Fact is, sometimes the business will failed and go bankrupt. That's why the partners have to discuss how the business organization should be dissolved if that happen.