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Norma-Jean [14]
3 years ago
7

Which statement is correct? Any portfolio that is correctly valued will have a beta of 1.0. A risk-free security plots at the or

igin on a security market line graph. A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph. A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0. An underpriced security will plot above the security market line.
Business
1 answer:
zepelin [54]3 years ago
7 0

Answer:

An underpriced security will plot above the security market line.

Explanation:

Underpriced stocks (or securities) are those whose market value is below its earnings and risk value. Underpriced securities represent a lower risk and higher potential returns.

The security market line (SML) represents the capital asset pricing model (CAPM) and it shows risk-return relationships for securities. Since underpriced securities generate higher returns per risk, they are plotted above the SML.

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Denti-Way Systems, a manufacturer of dental appliances, invented and patented a new x-ray machine that radically reduced mainten
Ronch [10]

Answer:

The correct answer is letter "C": international.

Explanation:

International business strategies are the systems used to plan and implement a series of actions driven to compete and place a company in the international market. The process implies analyzing and evaluating the target market, implementing the organization's operations abroad using innovative technology and strategies, and monitoring the results. At this stage, firms tend not to be worried about production costs until the entry of competitors.

7 0
3 years ago
Larry comes to your office to file his 2020 tax return and tells you that he never received an Economic Impact Payment (EIP) dur
11111nata11111 [884]

Incomplete question. The options:

a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

b. File Form 14039, Identity Theft Affidavit, with the IRS.

c. Contact the Farm Housing Administration.

d. Contact the bank that received the deposit and ask them to redirect the funds to him.

<u>Answer:</u>

<u>a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.</u>

<u>Explanation:</u>

True. According to the information found on the IRS website concerning those who were eligible but didn't receive the Economic Impact Payment (EIP) during 2020, they are to fill the 2020 Form 1040 alongside submitting their tax returns for the year 2020.

Hence, Larry simply needs to file his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

4 0
2 years ago
1. Explain the difference between required rate of return and expected rate of return. If they are different at a specific point
77julia77 [94]

Answer: The answers to the questions are provided below.

Explanation:

1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.

An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.

The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.

When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.

2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.

3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.

3 0
3 years ago
Pet Stop Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operation
notka56 [123]

Answer:

Results are below.

Explanation:

Giving the following information:

May $380,000 June 420,000 July 580,000

All sales are on account. Of sales on account, 51% are expected to be collected in the month of the sale, 44% in the first month following the sale, and the remainder in the second month following the sale.

We need to calculate the cash collection for May, June, and July.

<u>Cash collection May:</u>

Sales on account from May= 380,000*0.51= 193,800

<u>Cash collection June:</u>

Sales on account from May= 380,000*0.44= 167,200

Sales on account from June= 420,000*0.51= 214,200

Total cash collection= $381,400

<u>Cash collection July:</u>

Sales on account from May= 380,000*0.09= 34,200

Sales on account from June= 420,000*0.44= 184,800

Sales on account from July= 580,000*0.51= 295,800

Total cash collection= $514,800

7 0
3 years ago
What to do to gain on the job experience and earn money while attending college
bogdanovich [222]

There are several ways to earn money and start building job experience while in college. One of the most common is an internship, where you work at a company under supervision of a mentor/intern coordinator, get paid, and often earn college credit. Another way would be to look for a part time or entry-level job in the field you are studying. Many college campuses have a career resource office designed to help students search for and gain relevant employment.

8 0
3 years ago
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