A traditional cover letter’s format includes an introduction, a and a paragraph.

You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of

mariarad [96]

Answer: 1.112375

Explanation:

Number of stocks = 20

Portfolio beta(Bp) = 1.1

Worth of stock to be sold(Ss) = 100,000

Portfolio worth(Wp) = 4,000,000

Beta of stock to be sold(Bs) = 0.9

Beta of other stock to be purchased(Bo) = 1.4

Therefore, new worth of portfolio (Np) :

(4,000,000 - 100,000) = 3,900,000

Bp = (Ss / Wp)Bs + (Np / Wp)Br

Where Br = Beta of what is left after the sale of the $100,000 stock

1.1 = (100,000 / 4,000,000)0.9 + (3,900,000/4,000,000)Br

1.1 = (0.025 × 0.9) + (0.975)Br

1.1 = 0.0225 + 0.975Br

1.1 - 0.0225 = 0.975Br

Br = 1.0775 / 0.975

Br = 1.105

New beta(Bn) :

(Ratio of sold stock × Bo) + (ratio of stock left × Br)

(100,000/4000000)1.4 + (3900000/4000000)1.105

Bn = (0.025 × 1.4) + (0.975 × 1.105)

Bn = 0.035 + 1.077375

Bn = 1.112375

7 0

3 years ago

Two brands of water, natural water and mountain water, are close substitutes. if the price of mountain water decreases, the f

nikdorinn [45]

Substitute goods are those goods which as a result of change in market conditions such as changes in price can replace one another for example mountain water and natural water. They are goods with positive cross elasticity demand unlike the complementary goods (goods that are used together). In this case, if the price of mountain water decreases, the fall in price shifts the demand curve for natural water leftward. This means there will be an increased demand for mountain water and a decreased demand of natural water.

7 0

3 years ago

Past behavior of demand is indicative of its future behavior, therefore past demand data can be used to construct demand forecas

Elden [556K]

This statement is the underlying principle of the __time series analysis___ method.

Time series analysis method is a statistical technique that is often employed to determine how a variable changes over a series of time.

Time series analysis has been used in sciences, economics, and mathematics to determine changes of a given data variable over time and in relation to other variables in the same time period.

The wide application of the time series analysis method in various fields is dictated by the need to construct forecasts and make predictions, that is, using past realities to guess future realities.

Thus, this statement that the underlying principle of time series analysis method is based on the fact that past behavior of demand is indicative of its future behavior is widely accepted.

Learn more about time series analysis here: brainly.com/question/19485270

5 0

3 years ago

Guillermo is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising,

quester [9]

Answer:

The answer is c. operating (master) budget.

Explanation:

Let re-visit to the definition of operating budget to justify why c. operating budget is the answer.

Operating budget is the budget for revenues and expenses for the future period, that is, it forecast how many level of activities and how much they will cost for income generating purpose in the forecast period.

As described in the question, the forecasting items falls among the expenses budgeting. Thus, c. operating (master) budget is the correct answer.

5 0

3 years ago

Randolph waters operates a watch repair business in mesa, arizona. He orders most of the watch parts from out-of-state suppliers

djverab [1.8K]

The option Randolph has a diversity action that can be brought in federal court is a true statement

Option C is correct .

Federal Court :

Federal courts are courts of special jurisdiction, meaning they can only hear cases sanctioned by the United States Constitution or federal statutes. The federal district court is the commencement for any case arising under federal statutes, the Constitution, or treaties

What is the jurisdiction of a state?

Jurisdiction refers to the strength of a state to work on persons, property, and circumstances within its territory. It may be utilized through legislative, executive, or judicial actions.

Learn more about federal court :

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5 0

2 years ago