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Vaselesa [24]
3 years ago
12

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 35 percent in Stock

T. The betas for these four stocks are 1.28, 0.45, 1.78, and 1.22, respectively. What is the portfolio beta?
Business
1 answer:
igor_vitrenko [27]3 years ago
5 0

Answer:

1.1265

Explanation:

The computation of the portfolio beta is shown below:

= Stock Q portfolio percentage × beta of Stock Q + Stock R portfolio percentage × beta of Stock R + Stock S portfolio percentage × beta of Stock S + Stock T portfolio percentage × beta of Stock Q

= 0.25 × 1.28 + 0.25 × 0.45 + 0.15 × 1.78 + 0.35 × 1.22

= 0.32 + 0.1125 + 0.267 + 0.427

= 1.1265

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Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

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At the beginning of year two, net book value = $5800 - $2320 = $3480

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6 0
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enot [183]

Answer:

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Explanation:

When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.

5 0
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Explanation:

4 0
2 years ago
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adell [148]
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