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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

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Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is bringing a new large televisio
Sergeu [11.5K]

Answer:

$238.18

Explanation:

For calculation of target cost first we need to follow some steps which is shown below:-

Step 1

Operating income before = Sold television - Cost

= $380 - $290

= $90

Step 2

Total operating income = $90 × 120,000

= 10,800,000

Step 3

New sales in units = Target operating income ÷ Increase percentage

= 10,800,000 ÷ (120,000 × 110%)

= 10,800,000 ÷ 132,000

= $81.82

Finally

So, the Target cost = Lower price - New sales in units

= $320 - $81.82

= $238.18

7 0
3 years ago
Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and services different currencies c
andre [41]

Answer:

Yes this is True because this conversion is used to capture the differences in cost of living between countries.

3 0
3 years ago
Than Wok emigrated from his war-torn country to the United States almost two years ago. He recently found a job working on an as
igor_vitrenko [27]

Answer:

C.social needs.

Explanation:

Maslow's hierarchy of needs is a motivational theory that goes through five forms of needs set out below:

1. Physiological needs: These are the survival needs i.e. food, clothing, house, air

2. Security needs: This need covers human, financial, etc. protection and security

3. Social needs: These needs represent an person being or not involved in social groups. It makes the person not feel alone, lonely, etc.

4. Awareness needs: Awareness needs are the recognition he or she receives

5. Self-actualization needs: As the name suggests, it is self-actualizing in order to let the person know about his or her abilities.

So according to the given options, the most appropriate option is C. as it shows the social needs i.e loneliness, alone, etc

4 0
4 years ago
The Oxford Company uses a job order cost system and applies factory overhead to jobs on the basis of direct labor cost. During t
sveticcg [70]

Answer:

See below

Explanation:

The amount of direct labor cost incurred is computed as;

= $30,000/$70,000 × $2,000

= $857

Overhead applied in ending working in the ending inventory of work in process on July 31

= $15,000/$70,000 × $2,000

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5 0
3 years ago
A company reports the amounts below in its statement of cash flows.
ludmilkaskok [199]

Answer:

C. 1.20

Explanation:

The total net cash flow consist of net cash flows from 3 activities namely; Operating activities, Investing activities and Financing activities.

Let the cash flows from operating activities be y

Therefore,

123,000  = y + 66,480  + 30,780  

y = 123,000 - 66,480  - 30,780  

y = 25,740

Current liabilities = (23,400 + 19,500)/2

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The company's operating cash flows to current liabilities ratio

= 25,740 /21450

= 1.20

3 0
3 years ago
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