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steposvetlana [31]
3 years ago
8

You have a portfolio that is invested 24 percent in Stock R, 38 percent in Stock S, and the remainder in Stock T. The beta of St

ock R is .71, and the beta of Stock S is 1.26. The beta of your portfolio is 1.37. What is the beta of the Stock T?
Business
1 answer:
Nady [450]3 years ago
4 0

Answer:

1.90

Explanation:

The computation of the beta of the stock T is shown below:

Portfolio beta = Invested percentage in stock R × beta of Stock R + Invested percentage in Stock S × Beta of stock S + Invested percentage in Stock T × Beta of Stock T

1.37 = 0.24 × 0.71 + 0.38 × 1.26 + 0.38 × Beta of Stock T

1.37 = 0.1704 + 0.4788 + 0.38 × Beta of Stock T

1.37 = 0.6492  + 0.38 × Beta of Stock T

0.7208 = 0.38 × Beta of Stock T

So, the beta of stock T is 1.90

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Answer: A. They are flat.

C. They are common to start-up businesses.

D. A single leader makes most decisions.

Explanation:

Entrepreneurial business structure is a structure whereby, the owner of the bsuniess makes every decisions. It is often a start up company or a small company and there's a direct mean of communication as the owner has few workers.

The structure is typically flat and the roles are not well defined. It also give rooms for promotion of ideas as workers can give opinions on certain issues.

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2 years ago
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3 years ago
Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men
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Answer:

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Explanation:

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Kurt leased a small building and converted it into a hockey supply shop. He had assumed that he could run a successful business
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Answer:

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Explanation:

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