Answer:
The beta of the other stock or stock B is 2.34
Explanation:
The beta of the portfolio is the weighted average of the individual stock betas that form up the portfolio. To calculate the beta for the portfolio, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in the portfolio
As the portfolio is equally as risky as the market, the portfolio beta is assumed to be the same as that of the market and the beta is 1.
The beta is the measure of systematic risk and a risk free asset does not have risk and has a beta of 0.
To calculate the Beta of stock B in the portfolio, we simply put the available values in the formula for the portfolio beta,
1 = 1/3 * 0 + 1/3 * 0.66 + 1/3 * Beta of B
1 = 0 + 0.22 + 1/3 * Beta of B
1 - 0.22 = 1/3 * Beta of B
0.78 * 3 = 1 * Beta of B
2.34 = Beta of B
Thus, the beta of the other stock or stock B is 2.34
Answer:
JT, SM, VD
Explanation:
Calculation to rank the products in the order in which they should be emphasized
VD JT SM
Selling price per unit
$ 344.85 $ 415.40 $ 119.32
Less:Variable cost per unit
$ 270.18 $ 310.88 $ 91.96
Contribution per unit
$74.67 $104.52 $27.36
÷Minutes on the constraint 5.70 6.70 1.90
=Contribution per minut
$13.10 $15.60 $14.40
Ranking
VD $13.10 Third
JT $15.60 First
SM $14.40 Second
JT, SM, VD
Therefore the product will be rank from the highest to the lowest which is JT, SM, VD
Answer:
The correct option is B,zero monetary cost but a $1,000 per month opportunity cost
Explanation:
Monetary cost also known as explicit cost is the actual costs incurred in running a business.But the business in this case is renting of the property,frankly speaking, Jeane has not incurred any cost in her property business,hence monetary cost is zero.
Opportunity is the cost or benefits from alternative course of action. Jeane not renting out the property on commercial basis is the alternative course of action in this case.Since the commercial letting gives $1500 and the letting to her brother gives $500, the difference between the two rents is $1000 which is benefits forgone from letting the house to her brother,that is the opportunity cost.
Answer:
Here answer to the first fill in the blank is money paid and answer for the second fill in the blank is overall sacrifice.
Explanation:
Here Eddie has perceived price as money paid for the purchase of his favorite beverage, he is ready to drive 30 miles for this beverage , just because he is saving a dollar on it, so from the Eddie's point view , driving 30 miles to get the beverage is worth it . But as per the most of the customers , Eddie is making an overall sacrifice by driving 30 miles to get the beverage , just because he is saving dollar on it, so from the most customers point of view , driving 30 miles is not worth it and a lot of sacrifice is being made.
Answer:
The trade discount is the discount of 5% equivalent to $25,000
Explanation:
The question parameters are;
The cost of the car, c = $500,000
The amount the car's list price is discounted = 5%
The duration over which the payment for the car should be made to receive the discount = 1 year
Therefore, the trade discount is the 5% of the list price, which is equivalent to 5/100 × $500,000 = $25,000
A trade discount is a reduction of the retail price of a good which a wholesaler or manufacture of the good gives a trader, which may be a wholesaler or a retailer based on certain agreements, when a group of goods or a particular type of goods is purchased
