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Marta_Voda [28]
3 years ago
13

Donald Gilmore has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Sto

ck Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta
Business
1 answer:
netineya [11]3 years ago
6 0

Answer:

Beta of Portfolio is 0.98

Explanation:

<u>Given</u>:  Investment in security X = $35,000

            Investment in security Y = $65,000

            Beta of X = 1.5

            Beta of Y = 0.70

Beta is a measure of degree of responsiveness of a security return with respect to market return.

The portfolio beta is the weighted average beta of individual stock beta's in a portfolio.

Beta of portfolio = Beta of Stock X × Weightage of money invested in X + Beta of Y × Weightage of money invested in Y

Beta of Portfolio = 1.50 × \frac{35,000}{100000} + 0.7 × \frac{65000}{100000}

Beta of Portfolio = 0.525 + 0.455 = 0.98

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Answer:

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _variation__ than a firm pursuing a strategy based on low cost and high volume

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The variation of the product means any change which changes the "physical attributes of an item" or the terms in which it is marketed "as altering the colour of a sugar pack. This is achieved by companies to increase their own market share.

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3 years ago
Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are lo
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Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and south eastern states. In the current year, the company reported average inventories of $ 1,668 million and an inventory turnover ratio of 8.0.

Fixed assets turnover ratio = 9.04 Net sales / Avera.

This ratio divides net sales by net fixed assets, calculated over an annual period. The net fixed assets include the amount of property,

Using Fixed Assets turnover ratio, we can find the net sale

Fixed Assets turnover = Net sale/Average fixed assets

$ 2,098 Net sale/1218674000

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6 0
1 year ago
When the effective-interest method of bond discount amortization is used,
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Answer: C. interest expense will not be a constant dollar amount over the life of the bond.

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When a bond is sold at a discount, the discount will have to be amortized over the life of the bond to ensure that it reaches par at maturity.

As a result, the interest expense will be based on a larger figure every year which would mean that it would have to be larger each time. t will therefore not be a constant dollar amount over the life of the bond.

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3 years ago
A corporation acquires new funds only when its securities are sold in the
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C so sorry I’m wrong
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The Organisation for Economic Co-operation and Development's requirement that personal data collected should be accurate, comple
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Answer:

Data Quality Principle

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Collected data is said to be relevant if it is a true representation of real world facts. If it is not then conclusions drawn from it will be incorrect.

Data should be complete, consistent, have integrity, and relevant for a specific use.

For example in marketing, a company uses names and contact information to promote their goods and services. The data needs to be correct and updated for it to be useful. Assume a customer has changed his address and phone number, and these were not updated. It will be difficult for the company to conduct business with him.

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2 years ago
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