1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
chubhunter [2.5K]
3 years ago
14

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the proces

s of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 13.0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Group of answer choices 11.20%; 1.23 12.97%; 1.42 12.35%; 1.36 10.64%; 1.17 11.76%; 1.29
Business
1 answer:
sergey [27]3 years ago
7 0

Answer:

The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23

Explanation:

Provided data;

90000 value portfolio with expected returns of 11% and beta of 1.20

($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.

The new expected portfolio return =

rp = 0.1 × 13% + 0.9 × 11%

rp = 0.1 × 0.13 + 0.9 × 0.11

= 11.20%

The new expected portfolio beta =

bp = 0.1 × 1.50 + 0.9 × 1.20

bp = 1.23

You might be interested in
The manager of a clothing store in the mall has hired five new employees for the summer. All of them have just graduated from hi
Pepsi [2]

Answer:

Theory X

Explanation:

It is correct to say that this manager is using the management approach known as theory X, which is a philosophy that says employees work only for the benefits they receive, and that they avoid job responsibilities, so management must be inflexible and follow the hierarchy of functions, with the manager being responsible for a high degree of supervision of the work and the responsibility of the employee for any error.

Theory X may not be ideal for the current administration, where the focus of organizations are people and the formation of a culture focused on innovation and collaboration.

5 0
2 years ago
When choosing where to eat lunch, Sharon looks for restaurants where she will be seated promptly and served her meal quickly. Fo
Vedmedyk [2.9K]

For Sharon,<u> responsiveness </u>is the most important of the five service quality dimensions.

<h3>What is Responsiveness?</h3>

Responsiveness can be defined as the process of responding to someone quickly or promptly without delay.

Based on the given scenario Sharon want the restaurant to render or provide service to her by serving her the meal quickly as possible.  

Inconclusion <u> responsiveness </u>is the most important of the five service quality dimensions.

Learn more about responsiveness here:brainly.com/question/475234

5 0
2 years ago
Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and
jonny [76]

Answer:

The correct answer is letter "B": nonphysical constraints.

Explanation:

According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.

4 0
2 years ago
The minimum number of training days per week for gaining strength is:
astra-53 [7]
At least 3 days per week with sufficient reps and sets.
7 0
2 years ago
Which position describes karl marx’s view of religion and society?
PtichkaEL [24]
The position that describes Karl Marx's view of religion and society is his power with the connection to religion. Karl Marx as one of the most influential people in the history for he implemented various revolutionary actions which were condemned and criticized.
5 0
3 years ago
Other questions:
  • A list of financial statement items for Ivanhoe Company includes the following: accounts receivable $16,800; prepaid insurance $
    6·1 answer
  • A year ago, the engineering team at a company got a new boss to oversee the them. Things were fine at first, but a few months in
    11·1 answer
  • Producers sell goods or services for a profit. True False
    13·2 answers
  • In two to four sentences, explain economies of scale.
    8·1 answer
  • If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs) at each
    8·1 answer
  • All of the following will occur if the government places an effective price ceiling on candy bars except:
    6·1 answer
  • Which of the statements are true of an entrepreneur? Check all that apply.
    9·1 answer
  • Franklin transferred 952 photos from his phone in 17 minutes. At what rate does his phone transfer photos?
    15·1 answer
  • Bankruptcy can make it difficult for you to get a loan, rent an apartment, or even get a job. True or false?
    14·1 answer
  • Discuss the concepts of Mean, Median, Mode, and Standard Deviation, including when each should be used, and evaluate the differe
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!