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
posledela
3 years ago
8

A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on the S&P index is 900. Futures

contracts on $250 times the index can be traded. What trade is necessary to achieve the following. (Indicate the number of contracts that should be traded and whether the position is long or short.)
a. Eliminate all systematic risk in the portfolio
b. Reduce the beta to 0.9
c. Increase beta to 1.8
Business
1 answer:
Blizzard [7]3 years ago
7 0

Answer:

Explanation:

A:

Number of contracts required:

= (0-1.2)×36,000,000÷(900×$250)

= -192

Since negative value, short 192 contracts.

B:

= (0.9 - 1.2)×36,000,000÷(900×$250)

= -48

Since negative value, short 48 contracts.

C:

= (1.8 - 1.2)×36,000,000÷(900×$250)

= 96

Since positive value, long 48 contracts.

You might be interested in
Establishing rules that will help you stay focused is called
Marianna [84]
The answer would be self-discipline 

The definition of self-discipline:   <span>the ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.</span>
7 0
3 years ago
Read 2 more answers
The following proceeds received by Grove City in year 1 are legally restricted to expenditure for specified purposes: Donation b
tatiyna

Answer:

The $1,200,000 should be accounted for in Grove’s special revenue funds

Explanation:

Special revenue fund: The special revenue fund is a fund that is introduced by the government to collect the money from the public. It is made to fulfill the need for specific purposes/ projects.  

The computation of special revenue funds is shown below:

= Income received for providing the meals to the needy people + financing of sales tax with respect to tourist facilities maintenance in the shopping district

= $300,000 + $900,000

= $1,200,000

4 0
4 years ago
While building the ancient pyramids, the Egyptians performed several management functions. They submitted written requests and c
geniusboy [140]

Answer:

a, b and c i.e Organizing, Planning and Controlling

Explanation:

Note: <u>Since more than one option is to be selected, the three terms have been provided as an answer</u>

Organizing is the management function concerned with creation of organizational hierarchy, defining roles and objectives and authority and reporting responsibilities.

Planning refers to providing for unforeseen future events and deciding the ways to deal with them.

Directing refers to the management function of guiding, supervising and leading people with an objective to meet organizational goals and extract efficient performance.

In the given case, written request signifies planning, creation of a staff and consulting before arriving at decisions refers to organizing and controlling function.

4 0
3 years ago
Jake manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately g
poizon [28]

Answer:

The given condition is an example of:

A. Menu costs

Explanation:

In the given question mentioning data is that

Jake is been managing a grocery store in any country which is experiencing high rate of inflation. He is mentioned to be paid in cash.

On his very payday he went outside immediately and bought as many goods as he could for himself as he was going to get his pay today and was needing those items.

So, he thought of buying all the items he is needing as for the next two weeks  in order of prevention of the money in his wallet from losing value due to high inflation rates.

And at last what he couldn't spend on buying for all that amount he converted that amount into most stable foreign currency for being used as a steep fee.

So all this were an example of :

A. Menu costs

7 0
3 years ago
Factors affecting communication in a an organization
iVinArrow [24]

FACTORS AFFECTING COMMUNICATION

Status / Role.

Cultural differences .

Choice of communication channel .

Length of communication .

Use of language .

Individual Perceptions / Attitudes / Personal

3 0
3 years ago
Other questions:
  • Which of the following statements represent the appropriate directional relationships between the concepts of inherent risk, con
    11·1 answer
  • Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies wer
    11·1 answer
  • Suppose Country A and Country B each have a GDP equal to $440 billion and $560 billion respectively. Country A has 100 million p
    7·1 answer
  • Suppose that the United States and China trade exclusively with each other. What will happen to the value of the U.S. dollar, ce
    7·1 answer
  • Hartley Psychiatric, Inc., needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide. The total cost
    11·1 answer
  • Catherine received a significant amount of traffic to her online pet store after launching her Display campaign. Unfortunately,
    13·2 answers
  • • Aiden and Sophia are married and they have always filed Married Filing Jointly.
    14·1 answer
  • When an interviewer says, “Tell me about yourself,” you should feel free to talk openly about your personal life.
    8·2 answers
  • Name and briefly describe the quantitative methods of control (ABM)
    15·1 answer
  • creative textiles inc. manufactures cloth and buys the chemical dyes for its use from california chemicals inc. california chemi
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!