The right answer for the question that is being asked and shown above is that: "The two cities are degrees apart in latitude." <span>The latitude value of Toronto is 43.70 degrees, and the longitude value is 79.40 degrees.</span>
Answer:
1.29375
Explanation:
Data provided in the question:
Total investment = $10,000
Number of different common stock = 8
Portfolio's beta = 1.25
Beta of a stock sold = 1.00
Beta of the replacement stock = 1.35
Now,
Change in portfolio beta = weight × (change in security beta)
also,
change in security beta
= Beta of the replacement stock - Beta of a stock sold
= 1.35 - 1
= 0.35
and,
Weight = Beta ÷ Number of different common stock
= 1 ÷ 8 = 0.125
Therefore,
Change in portfolio beta = 0.125 × 0.35
= 0.04375
thus,
New portfolio beta = Portfolio's beta + Change in portfolio beta
= 1.25 + 0.04375
= 1.29375
Answer: Fred; $14,990
Barney; $16,010
Explanation:
Each partner will receive 12% of their investment.
Fred will therefore receive,
= 12% * 13,500
= $1,620
Barney will receive,
= 12% * 22,000
= $2,640
Adding both these figures gives,
= 1,620 + 2,640
= $4,260
This figure needs to be subtracted from the income and then the rest will be split equally.
=31,000 - 4,260
= $26,740
= 26,740/ 2
= $13,370
Each partner is to get $13,370 extra.
Fred gets,
= 1,620 + 13,370
= $14,990
Barney gets,
= 2,640 + 13,370
= $16,010
