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Leya [2.2K]
3 years ago
10

Stock A has an expected return of 10% and a standard deviation of 20%. Stock B has an expected return of 13% and a standard devi

ation of 30%. The risk-free rate is 5% and the market risk premium, rM- rRF, is 6%. Assume that the market is in equilibrium. Portfolio AB has 50% invested in Stock A and 50% invested in Stock B. The returns of Stock A and Stock B are independent of one another, i.e., the correlation coefficient between them is zero. Which of the following statements is CORRECT? a. Portfolio AB's required return is 11%. b. Portfolio AB's standard deviation is 25%. c. Stock A's beta is 0.8333. d. Stock B's beta is 1.0000. e. Since the two stocks have zero correlation, Portfolio AB is riskless.
Business
1 answer:
Nina [5.8K]3 years ago
3 0

Answer:

Expected Portfolio return = 0.5(10)+0.5(13)= 5+6.5=11.5%

Expected Portfolio SD= 0.5(20)+0.5(30)= 25%

Beta of A, 10= 5+B(6)

5=6B

B= 5/6= 0.833

B of B, 13=5+B(6)

8=6B

B=8/6

B=1.33

b. Portfolio AB's standard deviation is 25%

c. Stock A's beta is 0.8333

These two statements are correct

Explanation:

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Multi-product branding is:_______.
Elan Coil [88]

Answer:

b. a branding strategy in which a company uses one name for all of its products in a product class.

Explanation:

Multi-product branding is a branding strategy in which a company uses one name for all of its products in a product class.

Multi-product branding is a business strategy widely used by manufacturers, it involves producing and selling multiple products using the same brand name for all.

For instance, Pears may have Pears diapers, clothing lines, lipstick ranges, shoes, body lotions, eye shadow, foundation etc. They are all different products manufactured and all branded as Pears.

The merits and advantages of Multi-product branding is high brand awareness, low promotional and advertising costs, and brand equity return.

8 0
3 years ago
As an upper-level manager for IBM, Danny is one of many people responsible for allocating organizational resources in order to a
kykrilka [37]

Answer:

informational

Explanation:

Based on the scenario being described within the question it can be said that Danny is mainly responsible for informational resources. This refers to any and all types of data, which in this case mainly pertains towards consumer preferences. Danny's responsibilities include gathering, analyzing, managing, organizing, storing, and distributing informational data.

3 0
3 years ago
Under absorption costing , a company had the following per unit costs when 10,000 units were produced Direct labor Direct materi
bezimeni [28]

Answer:

Total unitary cost= $16.2

Explanation:

<u>First, we need to compute the total fixed overhead:</u>

Total fixed overhead= 10,000*6= 60,000

<u>Now, the unitary absorption cost for 12,500 units:</u>

Direct labor= 2.8

Direct materials= 3.8

Variable overhead= 4.8

Total variable cost= $11.4

Fixed overhead= (60,000/12,500)= 4.8

Total unitary cost= $16.2

The unitary cost is lower.

5 0
3 years ago
Scenario
alekssr [168]

Answer:

Create a guide that security personnel will use that includes procedures for implementing an access control change.

Explanation:

The procedure guide must contain the steps Always Fresh security personnel should take to evaluate and

implement an access control change. You can assume any change requests you receive are approved.

Ensure that your procedures include the following:

▪ Status or setting prior to any change

▪ Reason for the change

▪ Change to implement

▪ Scope of the change

▪ Impact of the change

▪ Status or setting after the change

▪ Process to evaluate the change

Required Resources

▪ Internet access

▪ Course textbook

Submission Requirements

▪ Format: Microsoft Word (or compatible)

▪ Font: Arial, size 12, double-space

▪ Citation Style: Follow your school’s preferred style guide

Self-Assessment Checklist

▪ I created a procedure guide that provides clear instructions that anyone with a basic technical

knowledge base can follow.

▪ I created a well-developed and formatted procedure guide with proper grammar, spelling, and

punctuation.

▪ I followed the submission guidelines.

7 0
2 years ago
Shelly just completed her Master’s in Business Administration. She was at the top of her class. Shelly was offered a job in lots
aalyn [17]

Answer:

Yes. We can agree on the statement that suggests Shelly is a victim of discrimination. Especially, gender discrimination.

Explanation:

Gender discrimination means treating differently and biased based on the gender of a person. in this case, we can see that it has happened because Shelly is a girl.

The job role of secretary has traditionally been stereotyped as a role for "Women" and most of the managerial positions are traditionally perceived to be "male dominant" and not for females.

In this scenario, although Shelly is more than qualified to become the sales manager of this organization, she is not given that position and is given a lesser position that doesn't require much skills.

Looking at it from a logical perspective, we can say that this is mainly due to Shelly being a woman and the administration of this organization thinks that a woman should be a secretary of a manager rather than becoming the  manager.

5 0
3 years ago
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