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Tom [10]
3 years ago
13

our broker mailed you your yearminusend statement. You have​ $25,000 invested in​ Amazon, $18,000 tied up in​ Boeing, $36,000 in

Caterpillar​ stock, and​ $11,000 in DuPont. The betas for each of your stocks are 1.43 for​ Amazon, .79 for​ Boeing, 1.37 for​ Caterpillar, and 1.71 for DuPont. What is the beta of your​ portfolio?
Business
2 answers:
gladu [14]3 years ago
8 0

Answer: 1.312

Explanation:

GIVEN the following ;

INVESTMENTS :

Amazon - $25,000

Boeing - $18,000

Caterpillar - $36,000

DuPont - $11,000

BETAS :

Amazon - 1.43

Boeing - 0.79

Caterpillar - 1.37

DuPont - 1.71

To calculate the portfolio beta, Take the weighted average of each stock in the entire portfolio. This is done by taking the ratio or proportion of each stock in the portfolio to the entire stock in the portfolio. Then multiply each proportion by the beta value of each stock.

Total stock value of portfolio:

$(25,000 + 18,000 + 36,000 + 11,000) = $90,000

Therefore,portfolio beta is given by:

[(25000/90000) × 1.43] + [(18000/90000) × 0.79] + [(36000/90000) × 1.37] + [(11000/90000) × 1.71]

0.397 + 0.158 + 0.548 + 0.209 = 1.312 = 1.312

disa [49]3 years ago
3 0

Answer:

The beta of the portfolio is 1.312

Explanation:

The portfolio beta is the weighted average of the individual stocks' betas that form the portfolio. To calculate the portfolio beta, we will multiply the individual stock betas by their weightage in the portfolio that can be found by the investment in stock divided by the total investment in portfolio.

Total Investment in portfolio is 25000 + 18000 + 36000 + 11000 = 90000

The portfolio beta is,

Portfolio beta = 25/90 * 1.43  +  18/90 * 0.79  +  36/90 * 1.37  +  11/90 * 1.71

Portfolio beta = 1.312

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Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Mila [183]

Answer: Cost of Goods sold

Explanation:

Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.

Current Year                                                      Prior Year

Sales                                      100%                           100%

Cost of Goods sold               75.7%                          46.5%

Gross Profit                            24.3%                          53.5%

Operating expenses             17.3%                             35%

Net Income                              7.0%                            18.5%

<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>

<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>

8 0
3 years ago
Assume that you and your best friend each have $1,000 to invest. You invest your money in a fund that pays 10% per year compound
marishachu [46]

Answer:

correct answer is c. You both have the same amount of money

Explanation:

given data

invest = $1000

pay compound interest = 10%

pay simple interest = 10%

time = 1 year

solution

we get here difference in the total amount that is your friend money -  your money  .................1

so difference in the total amount = invest × (1+rate)^{time} - [ invest + ( invest  × rate × time) ] ......................2

put here value

difference in the total amount = $1000 × (1+0.10)^{1} - [$1000 +  ( 1000  × 10% × 1) ]

difference in the total amount = 0

so correct answer is c. You both have the same amount of money

7 0
3 years ago
You are choosing between these four investments and you want to be​ 95% certain that you do not lose more than 8.00 % on your in
Ainat [17]

Answer:

Corporate Bonds and T-Bills will have return above 8%

Explanation:

given data

investments  = 4

investment = 8 %

solution

first of all we get  95% confidence interval that is as

and here  investment returns and standard deviation are attach so

95% confidence interval = Return - 2 × SD to Return + 2 × SD    ................a

so here

we can see here as per table attach

here only Corporate Bonds and T-Bills will have return above 8%    

8 0
3 years ago
Emily wants to search online for entrepreneurship opportunities in the field of business development. However, she wants to skip
jeka94

Answer:

C.

“entrepreneurship + business + development - branding”

Explanation:

Researchers usually put a hyphen before a word as a technique to exclude it from online search results. This method allows for narrowing down results to the desired pages only.  When searching for keywords that are frequently used together,  putting a hyphen helps exclude unwanted results.

4 0
3 years ago
Tamarisk, Inc. has 12000 shares of 5%, $100 par value, non-cumulative preferred stock and 48000 shares of $1 par value common st
hjlf

Answer:

$84,000

Explanation:

preference share dividend is at 5% on $100 par value. The  number of preference shares is 12,000 shares ( non cumulative)

The year 2017 preference share dividend pay out is 5% of 100 multiplied by 12,000 = $60,000

Deduct $ 60,000 from $144,000 dividend declared in 2017 , the balance is common stockholders dividend.

144,000 minus 60,000 = $84,000

Non cumulative preference shares dividend are paid first for the year the company declares dividend. The dividend is not cumulative ( prior years dividend for which company did not declare dividend are forfeited).

The common stockholders are paid dividend after preference shares dividend are paid. The common stockholders bears the full risk of the business as seen above. In event of liquidation, they are the last to be settled from realised asset of the bankrupt company.

7 0
3 years ago
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