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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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If total assets decreased by $49,928 during a period of time and stockholders' equity increased by $26,024 during the same perio
Gnesinka [82]

Answer:

d.$75,952 decrease

Explanation:

We simply use the Accounting Equation to determine the period's change in total liabilities.

So, the Accounting Equation states :

Assets = Equity + Liabilities

also

Assets - Equity = Liabilities

therefore,

($49,928) - $26,024 =  Liabilities

(- $75,952) = Liabilities

conclusion

The period's change in total liabilities is $75,952 decrease

5 0
2 years ago
Question five help please
Ratling [72]

Answer:

Its 4

Explanation:

hope it helps !!

brainliest plzzzz:))

5 0
2 years ago
Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,
hoa [83]

Answer:

The annualized rate of return to the Swiss investor is -7.93%.

Explanation:

This is an instance of foreign currency bond.

Using the exchange rate of $1 = 1.420, purchase price of the bond is calculated as $9,708.74 x 1.420 = 13,786.4108 Swiss Francs

Using the exchange rate of $1 = 1.324, maturity value is $10,000 x 1.324 = 13,240 Swiss Francs

Holding period is 6 months.

So, annualized rate of return is: (Maturity amount - Purchase price)/Purchase price x 12 / No of months

Annualized rate of return is: (13,240 - 13,786.4108)/13,786.4108 x 12/6 = -0.079268028.

Annualized rate of return is -7.93% approximately.

3 0
3 years ago
Burnett Corp. pays a constant $9.80 dividend on its stock. The company will maintain this dividend for the next 14 years and wil
lys-0071 [83]

Answer:

The current price of the stock is $68.42

Explanation:

The dividends on a stock that pays a constant dividend and will cease paying dividend after a defined period can be treated as an annuity. The dividends are constant and are paid after equal interval of time and for a defined period of time. To calculate the price of the share today, we will use the formula for the present value of ordinary annuity. The formula is,

Present value = 9.8 * [ 1 - (1+0.11)^-14 / 0.11 ]

Present value or current price of the stock = $68.42

6 0
3 years ago
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Rainbow [258]

Answer:

d. $75,000

Explanation:

                                total         Los Angeles    Bay Area  Central Valley  

Revenues           $750,000      $200,000     $235,000    $325,000

Variable exp.      $410,000        $110,000      $120,000     $180,000

Controllable       $210,000         $65,000        $75,000      $70,000

<u>fixed expenses                                                                                      </u>

controllable        $130,000        $25,000        $40,000      <u>$75,000</u>

profit margin

Noncontrollable fixed expenses and common fixed expenses are not included in the calculation of individual controllable profit margin.

7 0
3 years ago
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