1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rainbow [258]
3 years ago
6

g of 1.17 and an expected return of 15.4 percent. A risk-free asset currently earns 4.7 percent. The beta of a portfolio compris

ed of these two assets is .76. What percentage of the portfolio is invested in the stock
Business
1 answer:
alexira [117]3 years ago
3 0

Answer:

65% of the portfolio is invested in stock.

Explanation:

The weight of stock is assumed to be x.  

Then, the Weight of Risk-Free Stock will be 1 - x.

Beta\ of\ Portfolio\ =\ Weight\ of\ Stock\ \times\ Beta\ of\ Stock\ +\ Weight\ of\ Risk\ free\ asset\ \times\ Beta\ of\ Risk\ Free\ Asset

Beta of Portfolio =x\ \times\ 1.17\ +\ [\ ( 1\ -\ x)\ \times\ 0]

0.76 = 1.17 x

x = 0.76 / 1.17

x =0.64957

x = 64.957%

So, 65% of the portfolio is invested in stock.  

You might be interested in
What is yall favorite song minez is mood swings by pop smoke
Alex17521 [72]

Answer:

cool

Explanation:

4 0
3 years ago
Read 2 more answers
Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. Wha
Mekhanik [1.2K]

Answer:

$345,103 Is the answer I'm not good at explaining things so I won't attempt it.

5 0
2 years ago
What is always true about trial balance reports? (You may select more than one answer. Single click the box with the question ma
Keith_Richards [23]

Answer:

The correct answers are letters "A", "C" and "D": All accounts with balances are included in the report; The report is prepared for a range of dates; The total of the debit column must equal the total of the credit column.

Explanation:

A Trial Balance is a worksheet detailing the debit and credit balances of all the accounts for the company. According to accounting theory, the sum of all debits will be the sum of all credits for a given period. Relevant accounting activity of previous periods can be included. Since the trial balance is a list of all accounts, it acts as a test of accuracy.

8 0
4 years ago
thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
oksian1 [2.3K]

Answer:

E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are <em>"A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently." </em>

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as <u><em>how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.</em></u>

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

7 0
3 years ago
When making scrap or rework decisions, management should consider: (Check all that apply.)a. Revenue from selling defective unit
vlabodo [156]

Answer:

The correct answer is all of the above

Explanation:

Scrap or the rework costs are the costs which is incurred in order to repair the   items that are defective. And the decision to rework or scrap an item or product, ground on the benefits or advantage of the incremental costs.

If the reworked units generate or yield greater advantage or benefit rather than the selling them as scrap, then the decision to rework will be considered.

And if the decision of rework is taken, then the management should consider the incremental costs, revenue or profit from selling the defective units as scarp and the lost profit on selling and making the new units while the rework is performed.

3 0
3 years ago
Read 2 more answers
Other questions:
  • What is an annual pre tax income
    7·2 answers
  • Calculate real gdp given nominal gdp and inflation
    7·1 answer
  • Consumers' affinity for sports brands may be immune to threats other brands face, such as competition for attention and switchin
    14·1 answer
  • During the accounting period, the company purchased $234,000 of direct raw materials. it incurred $180,000 of direct labor costs
    11·1 answer
  • Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has
    5·1 answer
  • 1. Organize around outcomes, not tasks. 2. Identify all the organization’s processes and prioritize them in order of redesign ur
    6·1 answer
  • The calculation of the payback period for an investment when net cash flow is uneven is: Multiple Choice Determining the net pre
    11·1 answer
  • In the market for gadgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical dow
    8·1 answer
  • The​ product/market expansion grid is a tool that allows marketers to identify growth opportunities. Of the​ following, which re
    10·1 answer
  • Question 6 of 10
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!