Answer:
The new portfolio beta is 1.31 rounded off to two decimal places.
Explanation:
The portfolio beta is a function of the sum of the weighted average betas of the individual stock's that form up the portfolio. The portfolio beta is calculated using the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w is the weightage of each stock in the portfolio
The beta of the portfolio when one stock with a beta of 1 is sold is,
The sum of individual stock betas for 19 stocks is = 20 * 1.31 - 1 * 1 = 25.2
The new portfolio beta when one stock with a beta of 0.97 is added is,
Portfolio beta = (25.2 + 0.97) / 20
Portfolio beta = 1.3085 rounded off to 1.31
Answer:
- 34 coupons.
- $33.75
Explanation:
The coupons are the interest payments the bond makes.
1. The bond has a term of 17 years and coupons are to be paid semi-annually.
This means that for every year, 2 coupon payments will be made.
In 17 years therefore:
= 17 * 2
= 34 coupons
2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:
= 6.75% * 1,000 * 1/2
= $33.75
Answer:
$1,720
Explanation:
Total annual premium for both Karen and Mike = $400 + $600 = $1,000
If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150
We use formula FV to calculate the future value of annual payment:
= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720
Answer:
True
Explanation:
When a company as a framework to measure risk against, it can properly assess risk in different periods of time, depending of the risk score obtained within the framework.
This helps regulators because they can access an accurate primary information from the company itself (later on, they should probably compare that information against their own standards in order to prevent bias), and it also helps the company because it can see where it stands in terms of risk, which reduces uncertainty.
Answer:
Violation of intellectual property rights is known as infringement. The most common infringements are appropriating someone else's property rights without authorization and using something else's property without paying for it.
For example a patent infringement happens when a company uses someone else's patent for producing their owns products or services, e.g. copy cell phone technologies.
Another common example is copyright infringement that happens when someone downloads a movie, song or software from the internet without paying a fee.
