Answer:
Beta= 1.133
Explanation:
Giving the following information:
Coke:
beta= 1.1
Investment= $10,000
Wal-Mart:
beta= 1
Investment= $20,000
<u>First, we need to calculate the proportion of investments:</u>
Coke= 10,000/30,000= 0.33
Wal-Mart= 20,000/30,000= 0.77
<u>Now, to calculate the beta of the portfolio, we need to use the following formula:</u>
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (0.33*1.1) + (0.77*1)
Beta= 1.133
Answer:
It suggests that they are not doing anything competitively different.
Explanation:
Network externalities if well harnessed should bring about an increase in end users satisfaction and value derived.
Multi housing costs, ordinarily, and when taken as a whole, should results to an overall minimization of the total costs. Economics of scales and other resources are centrally allocated here, and the effect should be a gain to the entity.
Level of differentiation across firm's offerings - products or services, signals the procedures an organization adopt to mark the uniqueness of their products or services. It shows how distant they are among the other varying sets.
Thus, from the case given, the four firms have the same share of the market - 25%. The implication is that as far as we are concerned, their level of activities and postures in the market is same and/or similar. This ultimately cuts across the network externalities, multi housing costs and the level of differentiation of firm's offerings. They are thus not competitively different.
Answer: C) $1.04/C$1
Explanation:
We define the inflation rate in a certain country as
- a rate at which the value of a currency is falling
- as a result the usual level of prices for goods and services keeps rising.
1 year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1.
That time inflation rate in US was 4% greater than in Canada.
So, the current spot exchange rate of U.S. dollars for Canadian dollars :
($1 + 4% of $1)/C$1
=($1+$0.04)/ C$1
=$1.04 / C$1
Hence, the correct option is C) $1.04/C$1
Answer:
Present Value= $15,874.25
Explanation:
Giving the following information:
Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?
<u>This is a rare case where the interest rate is negative:</u>
Interest rate= 0.03 - 0.06= -0.03
Having said this, the present value is higher than the final value:
PV= FV/ (1+i)^n
PV= 14,488/ 0.97^3= $15,874.25
Answer:
$18,640
Explanation:
Given that,
Balance as per books = $6,500
Non Sufficient fund checks returned by the banks = $3,200
Bank service charge = $60
The bookkeeper recorded a $ 1,700 check as $ 17,100 in payment of the current month's rent.
Adjusted book balance:
= Balance as per books + Wrong entry - Non Sufficient fund checks returned by the banks - Bank service charge
= $6,500 + ($17,100 - $1,700) - $3,200 - $60
= $18,640
