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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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Packard Corporation reports the following information: Net cash provided by operating activities $335,000 Average current liabil
Molodets [167]

Answer:

$165,000

Explanation:

Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.

The Depreciation is already adjusted in the Cash Flow from operating activities.

Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure

Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000

Current and Long term liabilities has nothing to do in free cash flow calculations.

4 0
3 years ago
An account related with another account on the financial statements that 1) directly reduces the related account and 2) has an o
VLD [36.1K]

Answer:

Contra account.

Explanation:

A contra account is an account that has an opposite of what is the normal balance for the class of such an account. a company would be able to report the original amount and in so doing also be able to report the reduction and then what is the net amount would be reported. in other words such an account is used to reduce the value of another related account. And thereafter the net value is what is going to be reported.

6 0
3 years ago
The following information is from the annual financial statements of Nancy Company.
lakkis [162]

Answer:

5.79 times

Explanation:

The computation of the Accounts receivable turnover ratio  

= Credit sales ÷ average accounts receivable

where,  

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

= ($46,400 + $49,700) ÷ 2

= $48,050

And, the net credit sale is $278,000

Now put these values to the above formula  

So, the answer would be equal to  

= $278,000 ÷ $48,050

= 5.79 times

5 0
3 years ago
The _________ of Office Depot includes Amazon, where many people order office supplies, as well as manufacturers of office suppl
Komok [63]

Answer:

Task Environment

Explanation:

Task environment is an external environment that affects an organization's ability to achieve its business goals. We could say that any type of  business or customer relationship directly with an organization has the ability of being the  part of the business environment. We could count some examples to the mission environment sectors : competitors, customers, suppliers, and labor supply.

3 0
4 years ago
Read 2 more answers
3.63 cubic yards + 1.53 cubic yards
Lady_Fox [76]
5.16 cubic yards is the answer.
6 0
3 years ago
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