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makkiz [27]
3 years ago
8

Suppose Intel stock has a beta of 1.6, whereas Boeing stock has a beta of 1. If the risk-free interest rate is 4% and the expect

ed return of the market portfolio is 10%, according to the CAPM, a. What is the expected return of Intel stock? b. What is the expected return of Boeing stock? Stock Price/Share ($) Number of Shares Outstanding (millions) Golden Seas 13 1.00 Jacobs and Jacobs 22 1.25 MAG 43 30 PDJB 5 10 M12_BERK5561_04_SE_C12.indd 400 12/10/16 12:03 AM Chapter 12 Systematic Risk and the Equity Risk Premium 401 c. What is the beta of a portfolio that consists of 60% Intel stock and 40% Boeing stock? d. What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock? (Show both ways to solve this.)

Business
1 answer:
AnnyKZ [126]3 years ago
8 0

Answer: see affixed, a document containing the solution

Explanation:

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____ act as the export sales department for a manufacturer. Group of answer choices International freight forwarders Shippers as
Tomtit [17]

Answer:

Export management companies

Explanation:

Export management companies acst as the export sales department for a manufacturer.

Export management companies refers to firms that helps in the distribution of goods produced by other firm's in the international market. They export goods on behalf of other firm's.

Export management companies are independent companies that provides support services for other firms engaged in exporting. Services rendered by export management companies includes: insuring, billing, shipping, warehousing among others.

They also help to provide important information that will improve the quality of product to firms who hire them.

3 0
3 years ago
Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value,
elena-14-01-66 [18.8K]

Answer:

2.11%

YTM 0.089142162

YTC 0.068070103

Difference: 0.021072059 = 0.0211 = 2.11%

Explanation:

To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:

This is solve for excel and goal seek tool

It could also be solve with a financial calculator

YTC:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment: $ 120

time 5 yeaars

rate 0.068070103 (solved with excel)

120 \times \frac{1-(1+0.0680701028057608)^{-5} }{0.0680701028057608} = PV\\

PV $494.5766

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity: $ 1,050 (call price)

time   5.00

rate  0.068070103

\frac{1050}{(1 + 0.0680701028057608)^{5} } = PV  

PV   755.42

PV c $494.5766

PV m  $755.4235

Total $1,250.0002

YTM:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Cuopon payment: $ 120

time 15 years

rate 0.089142162 (solved with excel)

120 \times \frac{1-(1+0.0891421622982136)^{-15} }{0.0891421622982136} = PV\\

PV $972.2006

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity $ 1,000.00

time   15 years

rate  0.089142162 (solved with excel)

\frac{1000}{(1 + 0.0891421622982136)^{15} } = PV  

PV   277.80

PV c $972.2006

PV m  $277.7995

Total $1,250.0001

6 0
3 years ago
Businesses should customize invoices to best detail the products or services they provide.
Doss [256]

Answer: A

Explanation:

5 0
3 years ago
Read 2 more answers
Anita is a new buyer. luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises
topjm [15]

Anita is a new buyer. luckily <u>her title insurance</u> will help her before the sale and can reimburse her after the sale if a title issue arises.

Insurance is a manner to manage your risk. whilst you buy insurance, you buy protection in opposition to unexpected financial losses. The insurance company pays you or someone you choose if something awful takes place for you. when you have no coverage and an accident occurs, you'll be answerable for all related costs.

The six maximum commonplace types of car insurance are automobile legal responsibility coverage, uninsured and underinsured motorist coverage, comprehensive insurance, collision insurance, clinical bills, and personal damage protection.

Amongst country-wide insurers, USAA has the most inexpensive fees, at $36 per month, with country Farm in 2d location, at $44 consistent per month. The cheapest nearby employer is Farm Bureau, at $39 according to month.

Learn more about the insurance here: brainly.com/question/25855858

#SPJ1

4 0
2 years ago
A consulting engineer has been engaged to advise a town how best to proceed with the construction of a 200,000 water supply rese
kozerog [31]

Answer:

<u>Single stage construction</u>

PW of Cost = $22,400,000 + 100,000(P/A, 4%, 25)

PW of Cost = $22,400,000 + 100,000(15.622)

PW of Cost = $22,400,000 + $1,562,200

PW of Cost = $23,962,200

<u>Tow stage construction</u>

PW of cots = $14,200,000 + $75,000(P/A, 4%, 25) + $12,600,000(P/F, 4%, 25)

PW of cost = $14,200,000 + $75,000(15.622) + $12,600,000(0.3751)

PW of cost = $14,200,000 + $1,171,650 + $4,726,260

PW of cost = $20,097,910

Conclusion: We should choose two stage construction as it has lesser Present worth of cost.

6 0
3 years ago
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