Answer:
a. Amount to invest in Y
The amount that will be invested in Stock Y should be such that the expected return of the portfolio would equal 12.1%.
This would be determined by the weights of the stock.
Assume the weight to be invested in X is x.
Portfolio return = (weight of X * Return of X) + (weight of Y * Return of Y)
12.1% = (x * 10.28%) + ( (1 - x) * 7.52%)
0.121 = 0.1028x + 0.0752 - 0.0752x
0.121 - 0.0752 = 0.1028x - 0.0752x
0.0458 = 0.0276x
x = 0.0458 / 0.0276
= 1.6594
Weight in stock Y:
= 1 - 1.6594
= -0.6594
Amount to invest in Y:
= -0.6594 * 100,000
= -$65,940
b. Portfolio beta
It will be a weighted average of the betas of the two stocks:
= (Weight of stock X * Stock X Beta) + ( Weight of stock Y * Stock Y beta)
= (1.6594 * 1.20) + (-0.6594 * 0.80)
= 1.46
Answer:
c. $36,070
Explanation:
contribution margin ratio is the ratio of the contribution to sales of an entity for a given period.
contribution margin ratio= contribution/sales
where contribution is the difference between sales and the variable cost
Given;
sales = $137,000
contribution margin ratio = 61% = 0.61
0.61 = contribution/$137,000
contribution = $137,000 × 0.61
= $83,570
Net operating income is the difference between the contribution and the fixed cost.
Fixed cost = $47,500
Net operating income = $83,570 - $47,500
= $36,070
Answer:
Most states require that an LLC have
Explanation:
LLC:
In business, LLC is known as limited liability company. It is such company in which the owner of the company has the limited liability.
- LLC has many advantages as it prevents the owner of the company from the personal liability regarding the debts and liabilities of the company.
- LLC can also be treated as non-profit organization under specific circumstances.
- For a company to be considered as LLC, the company must have at least one member.
Brings investors together so that they can buy and sell with each other. Investing in the stock market can be very lucrative for the investor if it is done the right way. Many people invest in the markets as a way to earn extra money alongside their incomes. To make money on the stock market, one has to look carefully at many different factors that could affect the stock pick they invested in. The most important way that investors can be prepared to act is on stock market news. News is very important because we can use it to forecast events in the future.