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Margaret [11]
3 years ago
5

In a portfolio of three randomly selected stocks, which of the following could NOT be true; i.e., which statement is false?

Business
1 answer:
Tpy6a [65]3 years ago
5 0

Answer: b. The beta of the portfolio is higher than the highest of the three betas

Explanation:

The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.

For instance.

3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.

A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.

The portfolio beta will be;

= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)

= 1.98

Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.

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An increase in accounts receivable will result in a(n) ______ in cash from sales revenue when using the direct method to determi
guajiro [1.7K]

When using the direct method for cash flows, one will notice that an increase in accounts receivable would result in a <u>DECREASE </u>in cash.

When an accounts receivable increases:

  • It means that more debt has been incurred by debtors
  • It means that less money entered into the company as people took goods but did not pay cash for them

Because the people did not pay cash for the goods yet took the goods, the company will see a reduction in its cash balance as the cash value of the goods left the company and there was no cash inflow from that activity.

In conclusion, an increase in accounts receivable leads to a decrease in cash.

<em>Find out more at brainly.com/question/25491863. </em>

8 0
3 years ago
Describe the 5 office layout.​
Morgarella [4.7K]

Answer:

The five most popular would be the...

Cubicle Office layout. This is the most popular and is basically a box with an opening.

Open Office layout. This is several rows of large desks. By definition, it is not very enclosed.

Co-Working Office layout. Less common, these are offices rented out to employees by third parties.

Team-Cluster Office layout. For teams working on something, this is a good way to go. One table where you can easily work together on things with each other as you go.

Hybrid Office layout. This one is a mix of a few others and customizable to a workplace's specific needs. Some of these don't even feel like offices!

5 0
3 years ago
Eliminating waste, selling products that are produced with sustainable methods, and installing natural power generation illustra
Aleksandr-060686 [28]

Answer:

option "C" is the correct answer for the following statement.

A knowledge-based approach.

Explanation:

The Knowledge-Based Approach. Information-Based Training is a method that includes trying to adapt hypotheses, knowledge, and customs from a wide range of scientific fields and implementing them whenever suitable for the training engagement.

There were several benefits to portraying information directly through rules: Development and preservation.  

  • Explaining.  
  • Purpose.

6 0
3 years ago
Emma's property is assessed at $650,000. her property qualified for a $50,000 homestead tax exemption and was appraised at $800,
Rama09 [41]
Emma's taxable property value should be $600,000 since her taxes will be based on the assessment not the appraisal and also because she gets the $50,000 tax reduction so therefore to reiterate she will be taxed on only the $600,000.
6 0
3 years ago
An income statement for Tommy's Bookstore for the first quarter of the year is presented below: Tommy's Bookstore Income Stateme
Semmy [17]

Answer:

Contribution margin = $200,000

Explanation:

As per the data given in the question,

Contribution margin = Sales - Variable expense

Number of books = $880,000 ÷ $55

=16,000

Gross margin  = 340,000

Variable selling expenses = 16,000 × $6

=$96,000

Variable administrative expense = $880,000 × 5%

=$44,000

Total = $96,000 + $44,000

= $140,000

Contribution margin = $340,000 - $140,000

= $200,000

7 0
3 years ago
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