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
Mademuasel [1]
3 years ago
8

Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolio's beta is 1.20. Suppos

e you sell one of the stocks with a beta of 0.8 for $5,000 and use the proceeds to buy another stock whose beta is 1.6. Calculate your portfolio's new beta.
Business
1 answer:
mr_godi [17]3 years ago
6 0

Answer:

portfolio's new beta is 1.25

Explanation:

Total number of stocks available in the portfolio = 15

Total portfolio = 1.20

Beta of stock to be sold = 0.8

Beta of stock to be purchased = 1.6

Weight of one stock (replacing stock) = 1/15

New portfolio beta = Total portfolio - (Weight * Beta of selling stock) + (Weight * Beta of purchasing stock)

New portfolio beta = 1.20 - [(1/15) * 0.8] + [(1/15) * 1.6]

                               = 1.20 - 0.05333 + 0.10667

                               = 1.25334

                               ≈ 1.25

You might be interested in
Like a good economist, you calculated the opportunity cost of getting your college degree. suppose that at your university, you
hammer [34]
<span>After 4 years of college, it would be better to not go to college. Since his high school job was paying $25,000 a year ($100,000 in four years), and going to college cost $20,500 ($82,000 in four years), after those four years he would still have over $18,000 to spend at his leisure, or $4,500 every year. This leftover money can be used to find a place for rent for at least $375.</span>
6 0
3 years ago
Read 2 more answers
Write short notes by Napier bone ​
sergey [27]

Answer:

Napier's bones is a manually-operated calculating device created by John Napier of Merchiston, Scotland for the calculation of products and quotients of numbers. The method was based on lattice multiplication, and also called 'rabdology', a word invented by Napier. Napier published his version in 1617.

3 0
3 years ago
When reviewing the offering documents for a new issue, the FINRA Corporate Financing Department will only permit a new issue to
Dmitrij [34]

The FINRA Corporate Financing Department will only approve a new issue to be offered by a member firm after analyzing the offering documentation for the new issue and determining that the offering spread is reasonable and fair.

<h3>What does the finance department do?</h3>

A business's finance department is the division in charge of procuring and managing all financial resources on the company's behalf. The department oversees income and expenses in addition to ensuring that operations function smoothly with the least amount of disturbance.

<h3>How does a financial department operate?</h3>
  • Banking, leverage or debt, credit, capital markets, money, investments, and the design and management of financial systems are all included in the field of finance.
  • Micro economic and macroeconomic theories form the foundation of fundamental financial ideas.
<h3>Why is a company's finance department important?</h3>

A company's finance department is crucial in monitoring performance and developing answers to vital inquiries concerning risk management and return on investment. There won't be a green light without a profit.

learn more about finance department here

<u>brainly.com/question/22525869</u>

#SPJ4

7 0
2 years ago
A company has several internal-only, web-based applications on the internal network. Remote employees are allowed to connect to
aalyn [17]

Answer:

The changes to BEST counter the threat presented in this scenario is  Implement NAC to check for updated anti-malware signatures and location-based rules for PCs connecting to the internal network.

Explanation:

Implementing Network access Control NAC to check for updated anti-malware signatures and location-based rules for PCs connecting to the internal network.Network Access Control (NAC) is the best reedy that will not alter the existing work schedule in place.

This approach to computer security will unify endpoint security technology such as antivirus, host intrusion prevention, and vulnerability assessment for all users and foster stronger system authentication.

NAC will reinforce and strengthen the network security in order to prevent internal server issues from any contractor or employee henceforth.

7 0
3 years ago
Due to a recession, expected inflation this year is only 4.25%. However, the inflation rate in Year 2 and thereafter is expected
deff fn [24]

Answer:

Explanation:

Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%

Now, yield is r3 = 7.75+1.5 = 8.25%

r3=r*+inf

8.25=3.5+inf

inf=4.75%

4.75 = (4.25+i+i)/3

14.25 = 4.25 +2i

2i = 10

i = 5%

Inflation expected after year 1 is 5%

7 0
3 years ago
Other questions:
  • . Pratt was able to see the issue with student loans after she personally declared bankruptcy. Investors she spoke with in Silic
    6·1 answer
  • You are considering purchasing the Zions Bank $4.50 preferred stock. If you require a 4% return on this investment, what should
    5·1 answer
  • To encourage customers to open a mail offering them a subscription to home companion, a home furnishings magazine, the front of
    10·1 answer
  • Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following
    14·1 answer
  • What impact are macroenvironmental factors likely to have on the level of student enrollments at colleges and universities over
    10·2 answers
  • The Material Safety Data Sheet provides inventory quantity and availability information that is updated on a continuous basis as
    13·1 answer
  • Karen Bates has owned several automobiles from her favorite brand. Therefore, when deciding to purchase a new car for her daught
    8·2 answers
  • Kindly suggest an effective strategy to help new entrants gain a significant share of the financial service market
    9·1 answer
  • g 7. Problems and Applications Q3 Gilberto loves watching Downton Abbey on his local public TV station, but he never sends any m
    13·1 answer
  • When the marketing research problem is not clearly defined, a researcher will likely engage in ________ research.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!