Answer:
1.15
Explanation:
If investment is made in equal proportions, it means that;
weight in risk free ; wRF = 33.33% or 0.3333
Let the stocks be A and B
weight in stock A ; wA = 33.33% or 0.3333
weight in stock B; wB = 33.33% or 0.3333
Beta of A; bA = 1.85
Let the beta of the other stock be represented by "bB"
Beta of risk free; bRF = 0
Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "
The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;
wP = wAbA + wBbB + wRF bRF
1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)
1 = 0.6166 +0.3333bB + 0
1 - 0.6166 = 0.3333bB
0.3834 = 0.3333bB
Next, divide both sides by 0.3333 to solve for bB;
bB = 0.3834/0.3333
w=bB = 1.15
Therefore, the beta for the other stock would be 1.15
Answer:
Jillian's annual economic profit on the printing business is $6,000
Explanation:
Cost of ink = $2000/month = $2000×12/year = $24,000/year
Annual rent = $30,000
Annual salary of employees = $60,000
Total annual expenditure = $24,000 + $30,000 + $60,000 = $114,000
Annual revenue = $120,000
Annual economic profit = annual revenue - annual expenditure = $120,000 - $114,000 = $6,000
Answer:
D) She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.
Explanation:
Noelle is someone that is an average performer, so she will be open to doing mundane tasks since she is not overly worried about having a star performance.
She is also some one that spends more time than she should socializing with friends in other departments.
So she would be more prone to buying birthday cards for co-workers and organizing parties.
Noelle is an average performer with good social skills so she will be one that does not prioritise performing better than others
A bull market is a long period of rising stock prices. Bull market is a part of financial market that is being invested for a long period of time and is expected to gain a higher rise in the price.
Answer:
The product Deluxe sgould not be processed further.
Explanation:
Giving the following information:
Sales - Value without Processing - Additional Costs - Sales Value after processing
Premier: $1,350 - $900 - $2,700
Deluxe: 450 - 225 - 630
Super: 900 - 450 - 1,800
Basic: 90 - 45 - 180
We need to calculate the contribution margin of each product before and after processing.
<u>Premier:</u>
Before= 1,350
After= 2,700 - 900= $1,800
It is more profitable to continue processing.
<u>Deluxe:</u>
Before= 450
After= 630 - 225= $405
It is more profitable to sell before processing.
<u>Super:</u>
Before= 900
After= 1,800 - 450= $1,350
It is more profitable to continue processing.
<u>Basic:</u>
Before= 90
After= 180 - 45= 135
It is more profitable to continue processing.
