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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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What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0
3 years ago
Bond Features Maturity (years) 5 Face Value = $1,000Coupon Rate = 5.00%Coupon dates (Annual) Market interest rate today 5.00%Tim
german

Answer:

it should call back the bonds as it will save $8.25

Explanation:

Bond Price can be calculated using PV function. After 3 years,

N = 2, PMT = 5% x 1000 = 50, FV = 1000, I/Y = 2%

=> Compute PV = $1,058.25

Without the call option, the bond would be worth $1,058.25. But the firm can buy those bonds at $1,050.

Hence, it should call back the bonds as it will save $8.25

5 0
3 years ago
identify and explian the policy measures and institutional frame works am did at incentivising export in Nigeria​
GarryVolchara [31]

Answer:

Nigeria employs a combination of tariffs and quotas for the double purpose of taxing international trade for revenue generation and protecting local industries from highly competitive imports. The country's tariffs are determined by the ECOWAS 2015 – 2019 Common External Tariff (CET) Book.Sep 14

Explanation:

5 0
2 years ago
What is important to consider about a facility for a business?
Mamont248 [21]

It is important to consider some factors when choosing a facility for your business. Some critical factors to consider include the following.

  • Location (on well-traveled streets, or tucked away in the country)
  • The interior layout: the amount of space, how it would be subdivided into rooms or work areas to best serve you
  • How it could be constructed or decorated to provide the capabilities and business atmosphere that best suits your operation
  • The exterior: its appearance (and that of surrounding buildings) and the impression that it conveys about your business
  • Provision for necessary features such as parking facilities and loading docks

<h3>What is a Business Facility?</h3>

A Business Facility refers to a building location or portion at which employees perform services for their employer.

It is important to note that a business facility  does not include any workplace or portion of a workplace that also serves as the employee's or employer's personal residence.

Learn more about business facility at  brainly.com/question/12255901

SPJ1

3 0
2 years ago
Beckenworth had cost of goods sold of $11,221 million, ending inventory of $3,889 million, and average inventory of $2,145 milli
inysia [295]

Answer:

69.77 days

Explanation:

days' sales in inventory = number of days in a period/ inventory turnover

inventory turnover = Cost of goods sold / average inventory

Inventory turnover = $11,221 / $2,145 = 5.231235

days' sales in inventory = = 365 / 5.231235 million = 69.77 days

3 0
3 years ago
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