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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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Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).

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Which function of the management process requires a manager to establish goals and standards and to develop rules and procedures
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The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting

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Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives.

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3 years ago
In the study conducted by thomas &amp; chess in 1980 categorizing attachment, what percentage of babies were roughly categorized
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40%

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5 0
1 year ago
The accounting records for Social Event Planning Services include the following select unadjusted balances on December​ 31, 2018
blsea [12.9K]

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$18,500

Explanation:

The computation of the balance of Service Revenue shown on the  adjusted trial balance is shown below:

= Service revenue ending balance + accrued value

where,

Accrued value =  $1,500 ÷ 3 = $500

And, the service revenue ending balance is $18,000

So, the Service revenue balance equal to

= $18,000 + $500

= $18,500

This is the answer but the same is not given in the options mentioned in the question.

3 0
3 years ago
Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $54,000. The annual cash inflows for t
hoa [83]

Answer:

This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)

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Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.

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Therefore, the Internal rate of return(IRR) for this equipment  is 16.79%

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3 years ago
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