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Mice21 [21]
3 years ago
15

Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have return of 15%, betas of

1.6, and standard deviations of 30%-The returns ofthe two stocks are independent correlation coefficient between them, xy, is zero. Which of the following statements best describes the cl your 2-stock portfolio?
A) Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%
B) Your portfolio has a beta equal to 1.6, and its expected return is 15%
C) Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.
D) Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6
E) Your portfolio has a standard deviation of 30%, and its expected return is 15%.
Business
1 answer:
NARA [144]3 years ago
7 0

Answer:

B) Your portfolio has a beta equal to 1.6, and its expected return is 15%

Explanation:

Since the correlation coefficient between both stocks X and Y is zero, when one stock has an expected return a little higher than 15%, the other stock will have an expected return a little lower than 15%, so both variations basically cancel out each other. So the average expected return for both X and Y will be 15%.

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Which of the following is true of the BCG matrix approach. A) It is inexpensive to implement. B) It does not consider relative m
weeeeeb [17]

Answer:

D) It considers market growth rate to be a measure of market attractiveness

Explanation:

In 1970, Bruce D. Henderson developed and created a growth-share matrix for the Boston Consulting Group (BCG). The Boston Consulting Group (BCG) growth-share matrix is a tool used for analyzing and planning product lines in a business unit. It makes use of a graphical representation of a company's product line and services to analyze and make long-term strategic plans on which to invest more on or sell off.

Generally, products are divided into four (4) main categories in the BCG growth-share matrix;

1. Dogs.

2. Stars.

3. Question marks.

4. Cash cows.

The statement which is true of the Boston Consulting Group (BCG) matrix approach is that, it considers market growth rate to be a measure of market attractiveness.

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.

Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

7 0
3 years ago
The cost object of the plantwide overhead rate method is: Select one:
Oduvanchick [21]

The cost object of the plant-wide overhead rate method is "The unit of product"

Explanation:

Unit cost is the total production cost divided by the number of units manufactured. A company usually produces similar products in lots with hundreds or thousands of units per batch.

An overall overhead rate for the entire plant is a single level used only to allocate or assign all overhead production costs for a company to its output of production. Products for easier operation, such as assembly, can be allocated overhead at a level of $20 per hour of direct work.

5 0
3 years ago
andie needs to borrow $6,000 to buy a car. one dealer offers her a monthly payment of $193.60 on a 3-year loan with an apr of 10
Kitty [74]

Given the above stated information, the the correction options is C. Three year loan costs less than 4 year loan.

<h3>What is a the calculations justifying the above answer?</h3>

The computation is executed using excel. Here is the explanation for same:

  • There are two loan choices available. We must calculate the total payments for both alternatives and choose the one with the lowest cost.
  • The first option is to pay $193.60 per month with 10% interest for 3 years.
  • The second option is to pay $158 per month for four years at 12% interest.
  • Total cost for option 1 is $969.60.
  • Total cost for option 2 is $1584.00.

Hence from

Learn more about Loans:
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Full Question:

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7 0
2 years ago
Who determines who is authorized for access to areas containing sensitive devices/data/system
Alex Ar [27]

Answer:

Im thinking it is the FBI

Explanation: MY guess would point to the FBI bc they are the ones who come in on cyber related crimes. so i would say A is the correct answer

6 0
3 years ago
Read 2 more answers
Wanda is organizing an Employee Appreciation Day event and is soliciting vendors to provide food and drinks. There are 638 emplo
DedPeter [7]

In this case, Wanda can calculate the revenue for her Employee Appreciation Day event by using this formula:

  • revenue = [(number of employees of the company) + (½ x number of employee of the company)] x event price
  • x = [(638) + (319)] x 2
  • x = 952 x 2
  • x = $1,914

Thus, Wanda’s expected revenue is $1,914, assuming that half of the employees are married and will be attending the Employee Appreciation Day alongside their spouse.  


6 0
3 years ago
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