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STALIN [3.7K]
3 years ago
9

You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return of 10.2 percent. Stock A has

an expected return of 11.7 percent while Stock B is expected to return 8.3 percent. What is the portfolio weight of Stock A?
Business
1 answer:
Andrei [34K]3 years ago
6 0

Answer:

Weight of Stock A is 55,88%

Explanation:

We know Weight Stock A + Weight Stock B =1       so, Stock B=1- Stock A

(Stock A*11.7) +(Stock B* 8.3)=10.2

(Stock A*11.7) +((1- Stock A)* 8.3)=10.2

(11.7 Stock A) +(8.3- 8.3 Stock A)=10.2

(11.7 Stock A) - 8.3 Stock A=10.2-8.3

3,4 Stock A=1,9

Stock A=1,9/3,4=0,5588  55,88%

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DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100
Talja [164]

Answer: add this flight because marginal revenue exceeds marginal costs.

Explanation:

Since the total cost of the flight would be $1,100, of which $800 are fixed costs already incurred, then the variable cost in this case will be )$1100 - $800) = $300.

Since the expected revenues from the flight are $600, thus implies that the total revenue exceeds total variable cost and therefore Dash should add the flight because total revenue is more than total variable cost and the marginal revenue exceeds marginal costs.

7 0
3 years ago
A stock's contribution to the market risk of a well-diversified portfolio is called ___ risk. According to the Capital Asset Pri
zloy xaker [14]

Answer:

a) TRUE

b) FALSE

c) TRUE

Explanation:

A stock's contribution to the market risk of a well-diversified portfolio is called SYSTEMATIC risk.

a) TRUE. If beta of stock A = 1, stock A will move in the same direction as the market, by about the same amount.

b) FALSE. Higher beta stocks are expected to have higher required returns, as investors expect to receive higher compensation due to higher risk level of high beta stocks

c) TRUE. Market portfolio has beta = 1. Any stocks that have beta > 1 will be more volatile than the market.

3 0
4 years ago
Company sales reports are often utilized as part of a company’s marketing research activities and can provide insight about whic
Alex787 [66]

Answer:

The answer is: C) internal secondary

Explanation:

Internal secondary data is data that was collected by other members of your organization (through different activities) and is stored inside the organization.  In this case the sales reports (completed by the sales department) are used by a different department in the company (marketing).  

8 0
4 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $47,300 donut-making machine. The new machine would permit the com
UNO [17]

Answer:

COnsider the following calculations

Explanation:

1.  $

Annual Savings in Part-time help 6300

Added Contribution Margin from expanded sales 2600x1.50 3900

Annual Cash Inflows 10200

2.

NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x 5.076] - 47300

= $4475

NPV @ 10%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x4.355] - 47300

= -$2779

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 5 + [4475 / (4475+2779)] x 5

= 8%

3. NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [(10200x 4.355) + (12000x0.564)] - 47300

= $3889

NPV @ 15%

= [(10200x 3.784) + (12000x0.432)] - 47300

= -$3519

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 10 + [3889 / (3889+3519)] x 5

= 13%

4 0
3 years ago
Which of the following describes a situation in which there would be decreasing marginal utility?
Ray Of Light [21]
Marginal utility<span> is the additional satisfaction a consumer gains from consuming one more unit of a good or service.

so the decreasing in satisfaction from getting goods is (I think) B</span>
4 0
4 years ago
Read 2 more answers
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