D) a Japanese stores selling tea and spices from South Asia
a condition or state of affairs almost beyond one's ability to deal with and requiring great effort to bear or overcome. "grappling with financial difficulties"
When a tax is placed on the buyers of cell phones, the size of the cell phone market <span>and the effective price received by sellers both decrease. When a tax is placed on the buyers of cell phones, the market doesn't really increase or decrease as those needing cell phones are still going to purchase and use them however the price that is received usually decreases because they aren't moving at a fast rate. It is likely that the amount of tax placed on them will have a say in how they increase or decrease within the market. </span>
Answer:
1.15
Explanation:
If investment is made in equal proportions, it means that;
weight in risk free ; wRF = 33.33% or 0.3333
Let the stocks be A and B
weight in stock A ; wA = 33.33% or 0.3333
weight in stock B; wB = 33.33% or 0.3333
Beta of A; bA = 1.85
Let the beta of the other stock be represented by "bB"
Beta of risk free; bRF = 0
Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "
The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;
wP = wAbA + wBbB + wRF bRF
1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)
1 = 0.6166 +0.3333bB + 0
1 - 0.6166 = 0.3333bB
0.3834 = 0.3333bB
Next, divide both sides by 0.3333 to solve for bB;
bB = 0.3834/0.3333
w=bB = 1.15
Therefore, the beta for the other stock would be 1.15
Answer:
a. $13,000
Explanation:
Calculation for what royalty revenue should be
First step is to find the estimated amount for the second half of the year
Royalties for the second half =
15%*$30,000
Royalties for the second half= $4,500
Now let Compute for the total royalty revenue
Total royalty revenue for 20X5=$8,500+$4,500
Total royalty revenue for 20X5=$13,000
Therefore the royalty revenue should be $13,000
