Answer:
The beta of the portfolio is 1.22
Explanation:
In calculating the beta of the whole portfolio, we can calculate the weighted average beta of each stock .The sum of all weighted betas give the beta of the entire portfolio.
Beta of portfolio=amounted in first stock/entire amount invested*beta of the first+amount invested in second stock/entire amount invested *beta of the second stock
Beta of portfolio=($32000/($32000+$42000))*1.1+($48000/($32000+$48000))*1.3
Beta of portfolio=1.22
Answer:
The correct answer is D: $10,329
Explanation:
Giving the following information:
You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. The interest rate is 10% annual.
First, we need to determine how much is $700,000 in 30 years.
FV= PV*(1+i)^n
FV= 700000*(1.03^30)= $1,699,083.73
Now, we can calculate the annual payment required using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,699,083.73* 0.10)/[(1.10^30)-1]= $10329
Answer:
- Forecasting
Explanation:
Forecasting is a technique used by businesses to determine how much of a good to produce. Companies rely heavily on past sales volumes to forecast future productions. Apart from past sales, firms also consider trends in the industry and the countries economic status.
Forecasting is also known as projecting as it involves a rational way of predicting future productions.
<span>B. A felt layer underneath the tablecloth i hope this help you</span>
Answer:
P0 = $26.5925 rounded off to $26.59
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
P0 = 2.69 * (1+0.038) / (0.143 - 0.038)
P0 = $26.5925 rounded off to $26.59
