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Brilliant_brown [7]
3 years ago
11

UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and th

e market risk premium is 6%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal-Mart? Group of answer choices
Business
1 answer:
Elena-2011 [213]3 years ago
7 0

Answer:

10.9%

Explanation:

to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:

the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15

portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%

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E p = m · g  · h
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<u>Full question:</u>

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b. patent infringement.

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Answer:

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Explanation:

Bruce Tuckman developed 5 stages of group development.

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5) Adjourning/ Transforming Stage- In this basically after achieving the  goals/target team starts breaking up is known as Adjourning stage and the stage at which after achieving the goal the teams move forward to achieve goal and set new targets is known as <u>Transforming stage.</u>

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It is efficient to continue an activity as long as the marginal benefit exceeds the marginal cost.
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Answer: True

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