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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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Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has
Ne4ueva [31]

Answer:

D) has sunk costs of $6,000

Explanation:

Sunk cost is a cost which does not effect the financial decision, as this cost has already been incurred, and now it cannot be revoked.

Here maintenance cost is a regular expense which has to be incurred, and its not the cost which has already been incurred, same applies for operating cost.

Two years ago firm had spent $6,000 upgrading the equipment which was incurred earlier and now that cost cannot be revoked, further it will not lay any impact on any of the decisions made by the financial management.

Further amount to be spend of $5,000 has yet to be incurred and the decision to incur such cost can also be avoided, therefore it is not a sunk cost.

In this scenario D) has sunk sunk cost of $6,000

8 0
3 years ago
"Kim wants to run for the U.S. Senate. Kim experimented with drugs in the 1960s, but has not used any drugs in more than 45 year
marishachu [46]

Answer:

The communication behaviour that kim is engaged in is selective self-disclosure.

Explanation:

Self-disclosure is a process of communication by which one person reveals information about themselves to another. The information can be descriptive or evaluative, and can include thoughts, feelings, aspirations, goals, failures, successes, fears, and dreams, as well as one's likes, dislikes, and favorites.

Selective self-disclosure means self-disclosure but providing only that information which will create a positive image of one person on another.

6 0
3 years ago
__________ can be used to create a perfect inflation hedge.
34kurt

Answer:

c. TIPS

Explanation:

TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.

Hence, in this situation, the correct answer is option C. TIPS

3 0
3 years ago
Earlier, it was noted that you might be in the position where your firm is contemplating a layoff, though employees are not awar
ch4aika [34]

This is a risk-reward situation. If you are more about morality and ethics you could tell her before hand, but risk your job at hand. Or you could keep to yourself for your own best. I would suggest her the job without including the layoff, as it keeps you under safe ground and if she takes the other job, automatically removes one potential person to be laid off. This would increase your chances of keeping your job rather than being fired or laid off. The risks professionally would be your own job at risk, and personally your own morals/ethics.

3 0
3 years ago
How does a fixed exchange rate set the value for a currency?
olasank [31]

Answer:

A. By setting it at a specific value based on another currency

Explanation:

3 0
2 years ago
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