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Anika [276]
3 years ago
10

An individual has $32,000 invested in a stock with a beta of 1.1 and another $48,000 invested in a stock with a beta of 1.3 If t

hese are the only two investments in her portfolio, what is her portfolio's beta?
Business
1 answer:
blagie [28]3 years ago
4 0

Answer:

The beta of the portfolio is 1.22

Explanation:

In calculating the beta of the whole portfolio, we can calculate the weighted average beta of each stock .The sum of all weighted betas give the beta of the entire portfolio.

Beta of portfolio=amounted in first stock/entire amount invested*beta of the first+amount invested in second stock/entire amount invested *beta of the second stock

Beta of portfolio=($32000/($32000+$42000))*1.1+($48000/($32000+$48000))*1.3

Beta of portfolio=1.22

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Suppose the following information describes the economy: Household saving 300 Business saving 700 Government purchases 1,000 Gov
liraira [26]

Answer:

$1,000; $1,000

Explanation:

Given that,

Household saving = $300

Business saving = $700

Government purchases = $1,000

Government transfers and interest payments = $500

Government tax collections = $1,500

GDP = $5,000

Public saving:

= Government tax collections - Government purchases - Government transfers and interest payments

= $1,500 - $1,000 - $500

= $0

Private savings:

= Household saving + Business saving

= $300 + $700

= $1,000

National savings:

= Public saving + Private saving

= $0 + $1,000

= $1,000

3 0
3 years ago
A British firm may need dollars to pay for U.S. imports. It can work with banks in London to exchange pounds for dollars to make
Rzqust [24]

Answer:

The correct answer is Spot market.

Explanation:

The spot market or spot market is one in which both the transaction and the settlement of an operation coincide on the same date. Although it is considered cash market when delivery occurs up to a maximum of 2 days later.

In spot markets, transactions are usually settled within a day or two after the date of purchase / sale. This is what is understood as a settlement in D + 1 or D + 2. The transactions are also closed at the current price on the asset in question that exists at the time of the transaction. This is one of the main differences between the cash market and the futures market.

7 0
3 years ago
Shari is analyzing an incentive plan she has at work and has just completed exercising the option. What process has Shari comple
ale4655 [162]

Considering the situation described above, the process Shari has completed is known as "<u>Choice of Alternative Plans."</u>

The choice of alternative plans is the sixth step in the planning process. It is the stage in which the decision-maker chooses the right choice out of the available options.

The option taken at this point is carried out based on an evaluation of the situation.

Thus given that Shari has just completed exercising the option, this is the <u>choice of alternatives </u>she has completed.

The stages in the process of planning include the following:

  • Perception of opportunities
  • Establishing objectives
  • Planning premises
  • Identification of alternatives
  • Evaluation of alternatives
  • Choice of alternative plans
  • Formulating of supporting
  • Establishing a sequence of activities.

Hence, in this case, it is concluded that the correct answer is "<u>Choice of alternative plans."</u>

Learn more about the process of planning here: brainly.com/question/24382217

8 0
2 years ago
What should customer service representatives use to achieve a win-win outcome between customers and their employer?
rodikova [14]

Answer:

i think it is the 3rd one I'm not sure but I need help on one of mine and it would be really good if you can help me I will appreciateit

3 0
3 years ago
Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil.
Ray Of Light [21]
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
4 0
3 years ago
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