1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between co
White raven [17]

Answer:

Disposible income.

Marginal propensity to consume.

Disposible income, marginal propensity to consume.

The consumption will increase by  $800

Explanation:

The consumption function shows the relationship between consumption spending and disposible income.

The slope of the consumption function is the marginal propensity to consume.

Changes in consumption can be predicted by multiplying the change in disposible income by the marginal propensity to consume.

Given:  MPC = 0.80

           Disposible income increases by $1,000

consumption increase =  0.80*$1000

                                     = $800

Therefore, The consumption will increase by  $800.

7 0
3 years ago
Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the
Murljashka [212]

Allowance method of accounting for bad debts .

Option - B

<u>Explanation: </u>

The financial accounting term payments method refers to a system that is unplayable and records a bad debt expenditure estimate in the same period of accounting as the purchase. The deduction is used to adjust the cash flow accounts receivable.

The payment method is a better solution to the direct payment method because it is in line with the matching accounting theory.

Bad debts expenses are recognized soon since bad debts are likely and can be estimated to a fairly precise degree so that they meet the criteria necessary to recognize predicated losses and recognize the costs of bad debts.

7 0
3 years ago
A city's potential for growth or its susceptibility to decline is determined by a set of economic activities that the city provi
lapo4ka [179]

Answer:

B

Explanation:

Economic base are businesses that generate employment in a community or a geographical area.

Economic base analysis is a theory that posits that activities in an area divide into two categories:

1) Basic industries are those exporting from the region and bringing wealth from outside.

2)Nonbasic industries support basic industries.

The basic industries of a region are identified by comparing employment in the region to national norms.

7 0
3 years ago
Read 2 more answers
Which expense contributes to a business’s semi-variable cost?
motikmotik

for Plato the correct answer is D. overtime (wages) paid to workers :)

6 0
3 years ago
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During Jun
Leya [2.2K]

Answer:

The accounting equation holds as follows:

Asset = Liabilities + Equity = $80,000

Explanation:

Note: See the attached excel file for the analysis of the Effect of June Transactions on the Accounting Equation

From the last balances in the attached excel file, we have:

Assets = Cash + Receivable + Equipment = $41,000 + $8,000 + $31,000 = $80,000

Liabilities = Payable = $0

Equity = M. Chen, Capital - M. Chen, Withdrawals + Revenue - Expenses = $75,000 - $1,000 + $10,500 - $4,500 = $80,000

Liabilities + Equity = $0 + $80,000 = $80,000

Therefore, the accounting equation holds as follows:

Asset = Liabilities + Equity = $80,000

Download xlsx
4 0
2 years ago
Other questions:
  • An income property has a gross annual income of $14,250 and monthly expenses of $300. It has been valued at $147,000. What is th
    9·1 answer
  • Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff ma
    12·1 answer
  • The specific ways in which human resource professionals support an organization's strategy vary according to: their level of inv
    14·1 answer
  • An anesthesiology group is under contract to staff a hospital’s anesthesiology service. It believes it can provide coverage by h
    13·1 answer
  • Mutual funds allow the common investor without much initial capital to be able to a strategy not easily employable among stocks
    6·1 answer
  • Zipcar’s goal is to have an available zipcar located within 10–15 minutes of its members. This is an example of what component o
    14·1 answer
  • Employees at City Bank and Trust were really impressed with Liam, the new CEO. He was the first person who had fully developed a
    8·1 answer
  • A company that wants to market winter gear to citizens of Alaska should be aware that there are 24 words used in the state to de
    13·2 answers
  • Tentukankata ganti nama​
    11·1 answer
  • Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!