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KonstantinChe [14]
4 years ago
6

A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the

expected return on a portfolio that is equally invested in the two assets?
Business
1 answer:
love history [14]4 years ago
8 0

Answer:

6.75%

Explanation:

Data provided in the question:

Beta of the stock = 1.12

Expected return = 10.8% = 0.108

Return of risk free asset = 2.7% = 0.027

Now,

Since it is equally invested in two assets

Therefore,

both will have equal weight = \frac{1}{2} = 0.5

Thus,

Expected return on a portfolio = ∑(Weight × Return)

= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]

= 5.4% + 1.35%

= 6.75%

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Answer:

The correct answer is (E)

Explanation:

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a.21,000

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The computation of the number of units expected to be sold in the month of  May is shown below:

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3 years ago
A similarity between monopoly and monopolistic competition is that in both market structures a. there are only a few buyers but
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Answer:

c

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An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

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5 0
3 years ago
Megans personal information is shown below according to the following table what is her hypothetical credit score
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Explanation:

You did not include Megan's details so I used a reference question and you can answer with your details looking at how I answered this one.

Sherry personal information is shown below . age 26 .time of address 3 years .age of auto 9 years .car payment none. Housing cost 750 .checking and saving accounts checking only . Finance company reference no . Major credits cards 4 .ratio of debt to income 22% . Declared bankruptcy never .according to the following table what is her credit score

                                                    Option Points       Allocated based on table

Age                                                        26                               20

Time of address                                     3                                20

Age of Auto                                            9                                  0

Car Payment                                        None                            72

Housing Cost                                       750                              48

Checking and Saving accounts    Checking only                    8

Finance company reference                No                               60

Major credits cards                               4                                 60

Ratio of debt to income                       22%                               0

Declared bankruptcy                        Never                            102

Total                                                                                         390

7 0
3 years ago
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Sublimation is the defensive mechanism that is shown here by Tashinda given her  aggressive tendencies and gets in fights often in high school

<h3>What is a defensive mechanism?</h3>

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Read more on defense mechanism here: brainly.com/question/17643438

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6 0
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