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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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In Japan, the bureaucracy carries enormous influence and power. In particular, the Ministry of International Trade and Industry
noname [10]

Answer:

When the government has a strong say in what businesses do, two things may happen:

  1. businesses can become corrupt and inefficient,
  2. or the businesses can develop closer cooperation between them and the government that helps them become more efficient.

The later applies to Japan, but also to countries like Chile. Chilean government has signed free trade agreements with virtually every single country in the world, granting Chilean companies huge international markets.

While in the US, even now with President Trump, the government has a relatively small influence in the private sector (except for defense contractors). I believe American corporations have a larger influence on the government, than the influence the government has on them.

3 0
3 years ago
On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. Th
MakcuM [25]

Answer:

Explanation:

Cost of machine - $80000

Useful life - 5 years

Salvage value -$5000

Depreciable amount = 80000-5000= 75000

Annual depreciation = 75000/5 = 15000

Year                    DR                       Accum Dep

Cost                                                                                   8000                  

1                Depreciation 15000       15000  

2               Depreciation  15000      30000

Year 3      Depreciation  15000      45000

Year 4      Depreciation   15000      60000

Year 5      Depreciation   15000      75000

Financial statement template

Balanced sheet

Cash asset + Non cash asset = liabilities + Equity

Cash asset + 65000  = liabilities + equity

Income statement

Revenue - expenses = Net income

Revenue - 15000 - Net Income

3 0
3 years ago
On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
Ilya [14]

Answer:

Explanation:

Cash Payment to customers: $450,000 x contract rate of 9% x 1/2 = $20,250

Amortization of the premium: $11,795/6 periods = $1,966

Bond interest Expense: $20,250 - $1966 = $18,284

3 0
3 years ago
Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a to
SCORPION-xisa [38]

Answer:

Change Agent.

Explanation:

Change as it is naturally stated is said to be a continuous process which involves managers in this case at all levels, who should initiate change and how has to be deliberately decided in planned change.

Any resistance in introducing change is overcome by the change agent who motivates the employees to accept the change. Internal management takes help of external consultants in introducing planned change.

5 0
3 years ago
A cafeteria serving line has a coffee urn from which customers serve themselves. arrivals at the urn follow a poisson distributi
nalin [4]

Answer:

The answer is 3 customer's per minute.

Explanation:

Arrival date = 3 per minute

Service rate = 11 seconds. = 5.45 seconds.

Average number in system = 3 ÷ (5.45-3)

=  1.3 customers per minute.

=

5 0
3 years ago
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