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wlad13 [49]
3 years ago
14

You would like to combine a risky stock with a beta of 1.87 with U.S. Treasury bills in such a way that the risk level of the po

rtfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock
Business
1 answer:
Paul [167]3 years ago
8 0

Answer:

46.5%

Explanation:

The treasury bills have zero beta as they have no systematic risk. Beta is used in the Capital asset pricing Model to demonstrate a relationship between systematic risk and rate of return.

Expected Return = Rf + Beta * Rp

The percentage that should be invested in the risky portfolio will be,

1 - 1 / Beta

1 - 1 / 1.87

= 46.5%

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Following is information on an investment considered by Hudson Co. Assume the investment has a salvage value of $20,000. The com
zalisa [80]

Answer:

net present value is

$228,652.29-$200,000.00

=$28,652.29.

Explanation:

Net cashflows

Year 1= 100000

Year 2= 90000

Year 3= 95000 (75000+ 20000)

Totals= 285000

Present value at 12%

Formula for present value=

1/(1+r)^n

where r= interest rate

n= number of years

Year 1=1/(1+0.12)^1 =0.8929

Year 2=1/(1+0.12)^2= 0.7972

Year 3=1/(1+0.12)^3 =0.7118

Present value of net cash flows =

Present value × net cash flows.

Year 1= 0.8929 × 100000= $89,285.71

Year 2=0.7972 ×90000= $71,747.45

Year 3=0.7118×95000= $67,619.12

Totals = $228,652.29

Amount invested= $(200,000.00)

Net present value (NPV) is referred to as the difference between the present value of cash inflows and the present value of cash outflows over a period of time. Net Present Value is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.

Therefore, net present value is

$228,652.29-$200,000.00

=$28,652.29.

7 0
3 years ago
A client’s condition has resulted in a decrease in work demands of most cells in the body. Which change within the cell will lik
SVEN [57.7K]

Answer:

The correct answer to the following question will be "Decreased size of organelles".

Explanation:

  • Cell atrophy occurs in a decline in the size and number of cell cell types. Through cell atrophy, the cell reduced the absorption of oxygen and the development of mitochondria.
  • The size of the cell reduces. When faced with reduced work demands or unfavorable environmental factors, many cells are able to go back to a small size and to a lower and much more effective level of ability that is consistent with sustainability.
  • A reduction in the size of the cells is termed atrophy. The cell death cycle is not impaired.

Hence, it is the right answer.

6 0
3 years ago
A firm with $600,000 in sales, cash on hand of $750,000, liabilities of $200,000 and total assets of $1 million has a total asse
RideAnS [48]

Answer:

 Total Asset Turnover = 0.6 times

                       

Explanation:

Total Asset Turnover = $600,000/$1,000,000

Total Asset Turnover = 0.6 times

It measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company. Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover.

It is an important financial ratio used to understand how well the company is utilizing its assets to generate revenue.

5 0
3 years ago
Your company expects profits to be close to $4,000,000. The board has instructed you to increase retained earnings by approximat
artcher [175]

The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

The number of shares is assumed to be 100,000.

Computation of dividend per share;

\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

Learn more about the dividends in the related link:

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6 0
2 years ago
While working in a group, two of the members are not getting along. You bring the two members together so they can discuss this
Finger [1]

The statement " agree to share the research and work together on creating the presentation. " is the "Develop an agreement" step of conflict resolution.

This is further explained below.

<h3>What is conflict resolution?</h3>

Generally, The process of finding a mutually agreeable and peaceful conclusion to a problem involving two or more people is referred to as conflict resolution.

There might be a variety of reasons for the dispute, including personal, economical, political, or emotional factors.

When a disagreement emerges, the most effective strategy for resolving the conflict is often to engage in some kind of negotiation.

The tactics and procedures that are engaged in ensuring the peaceful termination of conflict and punishment are referred to collectively as "conflict resolution."

In conclusion, The steps of conflict resolution are

  • Determine where the issue is coming from.
  • What precisely is the problem at hand?
  • Consider the situation from a broader perspective and look for additional obstacles.
  • Create a shared vision for the future.
  • Investigate the many means through which their objective might be attained.
  • Develop an agreement.

Read more about conflict resolution

brainly.com/question/17744728

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4 0
1 year ago
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