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
Elza [17]
3 years ago
7

You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A

has a beta of 1.63 and Stock B has a beta of .95. How much needs to be invested in Stock B if you want a portfolio beta of 1.10?
Business
1 answer:
DerKrebs [107]3 years ago
6 0

Answer:

$7073.68

Explanation:

Data provided in the question:

Worth of portfolio = $15,000

Amount invested in stock A = $6,000

Beta of stock A = 1.63

Beta of stock B = 0.95

Beta of portfolio = 1.10

Now,

Beta portfolio = ∑(Weight × Beta)

let the amount invested in Stock B be 'x'

thus,

1.10 = [($6,000 ÷ $15,000 ) × 1.63] +  [( x ÷ $15,000 ) × 0.95 ]

or

1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]

or

0.448 = [( x ÷ $15,000 ) × 0.95 ]

or

x = ( 0.448 × $15,000 ) ÷ 0.95

or

x = $7073.68

You might be interested in
If Malaysian companies are highly efficient in the production of textiles and U.S. companies are highly efficient in the product
rosijanka [135]

If Malaysian companies were more efficient in textile production and the U.S. was more efficient in computer software, they should sign a <u>Free trade agreement. </u>

<h3>What would a free trade agreement do?</h3>

A free trade agreement allows for countries to be able to trade without any restrictions.

Implementing a free trade agreement here would allow funds to freely move to Malaysia for textile production, and to the U.S. for software companies.

In conclusion, this is a free trade agreement.

Find out more on free trade agreements at brainly.com/question/2201430.

3 0
2 years ago
What is a major plan that organizes several other plans?
Eva8 [605]
I think it’s D I’m not sure
5 0
2 years ago
What is the key to making extemporaneous speech sound professional and natural
Usimov [2.4K]
Well mainly extemporaneous speeches can be hard,  finding the right words without advanced notice may not be for every speaker. But trust me! No need to worry..... :) The extemporaneous speech is a perfect balance!!!!! This speech involves the speaker's use of notes and some embellishment to deliver a speech. To clear this up, a speaker who uses this method would have note cards or prompts that guide him from point to point, but he uses his own words as he goes along. What makes this different than an impromptu speech is that he has a loose guideline for his speech. He did not memorize anything....... he just used cues to know where to go next.
There are advantages but there are disadvantages to this type of speech sadly..... :(  For one, the audience will think you are a genius. You used few notes and appeared to know everything about the topic. But this is not something that can be done quickly. The same fact finding and research used for other types of speeches must be used here. The speaker also must rehearse this speech for timing, rhythm and flow. Now, if shooting from the hip is not your style, you may want to consider reading your speech!!!! :) But ya. I hope this is better. XD sorry about that.
6 0
2 years ago
What are examples of Hospitality and Tourism careers? Check all that apply.
alina1380 [7]

Answer:

D. Tour Guide

D. Tour Guide

A. Hotel Clerk

C. Waitress

Explanation:

these are the direct and  indirect careers related to hospitality and tourism. with the development of productive communications and travelling facilities, hospitality and tourism industry is one of the fastest growing sectors in any economy.

4 0
3 years ago
Read 2 more answers
Through a process called _______, marketers collect and evaluate information about the marketing environment.
OverLord2011 [107]

Answer:

<em>Through a process called </em><em><u>environmental</u></em><em><u> </u></em><em><u>scanning</u></em><em> marketers collect and evaluate information about the marketing environment.</em>

<em>What</em><em> is</em><em> </em><em>environmental</em><em> </em><em>scanning</em><em>?</em>

<em>Environmental</em><em> </em><em>scanning</em><em> </em><em>is </em><em>the </em><em>process</em><em> </em><em>of </em><em>continually</em><em> </em><em>acqu</em><em>i</em><em>ring </em><em>information</em><em> </em><em>on </em><em>events </em><em>occurring</em><em> </em><em>outs</em>ide<em> </em><em>the </em><em>organization</em><em> </em><em>to </em><em>identify</em><em> </em><em>and </em><em>interpret </em><em>potential</em><em> </em><em>trends.</em><em> </em>

3 0
2 years ago
Other questions:
  • Privacy concerns dictate that?
    10·2 answers
  • Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components depa
    7·1 answer
  • Research suggests that the most important determinant of new product success is:
    12·1 answer
  • If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as
    8·1 answer
  • Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $2500
    14·1 answer
  • A. Bank A offers a CD rate of 7% for 5 years.
    12·1 answer
  • Revenue is reported on the income statement in the period earned. The accounting concept supporting this reporting is
    14·1 answer
  • You expect KT industries​ (KTI) will have earnings per share of $ 6 this year and expect that they will pay out $ 2.25 of these
    6·1 answer
  • Johnson borrowed $45,000 secured by land with a basis of $20,000. Johnson could not pay the principal, so the bank foreclosed an
    6·1 answer
  • How long will it take money to double if compounded continuously
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!