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Rama09 [41]
3 years ago
13

Your investment club has only two stocks in its portfolio. $10,000 is invested in a stock with a beta of 0.4, and $40,000 is inv

ested in a stock with a beta of 1.2. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
pav-90 [236]3 years ago
5 0

Answer:

Portfolio's beta is 1.04.

Explanation:

Portfolio's beta is the weighted average beta. So, take weightage of each stock, multiply it with the respective beta, and add the results.  

Finding Portfolio value for Weightages:

Total Amount Invested OR Portfolio value is = 10,000 + 40,000 = $50,000

Weighted Average Beta:

(10,000 / 50,000) * (.4) + (40,000 / 50,000) * (1.2) = .08 + .96 = 1.04.

Thanks!

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A company borrows $100,000 from a bank; this is part of the: a. Secondary debt market b. Primary debt market c. Secondary equity
katrin [286]

Answer:

The answer is B. Primary Debt Market

Explanation:

Primary Debt Market is a type of market in which participants issue/obtain loan(bonds, notes, bills etc.)directly from a company(bank or lender).

The money is directly from the bank to the debtor(the company that is borrowing money).

Option B is incorrect because secondary debt market is from hand to hand i.e from debtor to debtor.

For example, Mr A. obtains a loan of $1000 dollar from a bank. This is primarily debt market. And afterwards Mr A. sells this particular loan to Mr B. This is secondary debt market because it is not directly from the bank.

Option C and D are incorrect because this transaction is a debt transaction and not an equity transaction

3 0
3 years ago
Consider a competitive labor market. Using the model of how income is determined in a labor market, describe the effects on wage
adelina 88 [10]

If there is an increase in labor productivity, there will be an <u>increase </u>in wages and an <u>increase </u>in individuals employed.

If better insurance policies are mandated by the government then wages and the number of people employed will <u>both decrease</u>.

This shows that the entity that actually pays the costs of health insurance premiums is <u>employers</u>.

<h3>What happens when labor productivity rises?</h3>

When there is an increase in labor productivity, employers will demand more employees in order to produce more. This will shift the labor demand curve to the right.

The new intersection of the demand curve with the supply curve will see an increase in the wage rate and in the quantity of those employed in the labor market.

<h3>What happens if better insurance policies are imposed?</h3>

If the government mandates that employers should provide better insurance policies, it means that employers will start paying more in insurance premium contributions.

This increased cost of labor will lead to employers demanding less employees which will lead to a decrease in the wage rate and in the number of those employed.

This shows that employers are mostly the ones who pay for health insurance premiums which is why an increase in these premiums will increase the cost of labor for them.

Find out more on the labor market at brainly.com/question/4389927.

3 0
2 years ago
Which of the following would be considered a savings alternative?
olganol [36]
B. is the answer thanks
7 0
3 years ago
Advantages and disadvantages of price optimization system
ladessa [460]

Answer:

Explanation:

The price system and I assume you mean the free price system, is very important in an economy. There are advantages and disadvantages to it.

In a free price system, the forces of supply and demand determine prices. The most efficient use of resources is when supply matches demand. Supply and demand are equal when the market determines the price at which a number of goods supplied equals a number of goods demanded. The price system also allows us to buy many products. Manufacturers are willing to make products when they can make money. When supply equals demand, businesses are maximizing the profit potential at the given price level.

One disadvantage of the price system is that for certain products, the costs of setting up the industry are so high, there is only one seller of the product. In cases like these, such as with the electric and the natural gas companies, or with the water companies, without government regulation, prices could be very expensive since they are the only provider of the product. In these cases, the government needs to regulate these industries because the price system would lead to very high prices for water, electricity, and natural gas. Since the setup costs for these industries are so high, there is no competition for these companies. This could cause consumers to make some very difficult choices if the prices are regulated by the government.

8 0
3 years ago
Enrique did not want to tell his manager that it was not likely that his employees would meet the looming production deadline. H
asambeis [7]

Answer:

B. Upward distortion

Explanation:

Based on the information provided within the question it can be said that this seems to be an example of upward distortion. In the context of business, this refers to when a lower employee fails to, or is hesitant to communicate negative information to his/her superiors due to the consequences. Which is what Enrique is doing in this scenario.

8 0
3 years ago
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