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gtnhenbr [62]
3 years ago
12

15. Ivan Knobel holds a well-diversified portfolio that has an expected return of 11.0%, a total value of $90,000, and a beta of

1.20. He is in the process of buying 1,000 shares of Syngine Corp at $10 a share and adding it to his portfolio. Syngine has an expected return of 13.0% and a beta 1.50. What will the beta on the portfolio be after the purchase of the Syngine stock?a. 1.17b. 1.29c. 1.36d. 1.42e. 1.23
Business
1 answer:
ValentinkaMS [17]3 years ago
7 0

Answer:

e. 1.23

Explanation:

As we know that

Old investment =  $90,000

And, the new investment = 1,000 shares × $10 = $10,000

So, the total investment = $90,000 + $10,000 = $100,000

Now the beta would equal to

= (New investment ÷ total investment) × new beta + old investment ÷ total investment) × new beta

= ($10,000 ÷ $100,000) × 1.50 + ($90,000 ÷ $100,000) × 1.20

= 0.15 + 1.08

= 1.23

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In the film Islam and America: Through the eyes of Imran Khan, which of the following best describes how average Pakistanis resp
aleksley [76]

Answer: c. They criticized or disparaged the IMF.

Explanation:

In the 2001 film, <em>Islam and America: Through the eyes of Imran Khan</em>, it is shown that the average person in Pakistan know what the IMF is and detests them. They criticized and disparaged the IMF with some reasons given being that;

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3 years ago
on January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residua
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Answer:

Annual depreciation= $189,600

Explanation:

Giving the following information:

On January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be 62000.

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3 years ago
What are the benifits of strategic management process
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4 years ago
Interest rates on 3-year Treasury securities are currently 1.92%, while 10-year Treasury securities yield 5.62%. If the pure exp
FromTheMoon [43]

Answer: 7.24%

Explanation:

From the question, we are told that:

3 years treasury securities have an interest rate = 1.92%

10 years treasury security has an interest rate = 5.62%

Let the 7 year treasury security interest in 3 years be represented by z.

Based on the expectation theory

( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10

(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10

(1.0192)^3 (1 + z%)^7 = (1.0562)^10

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Divide both side by 1.05871

(1 + z%)^7 = 1.72767/1.05871

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1 + z% = 1.6319^1/7

1 + z% = 1.6319^0.1429

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The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .

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