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Vlad [161]
3 years ago
13

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

ed return of 17.6 percent. Stock X has an expected return of 14 percent and a beta of 1.42, and Stock Y has an expected return of 10.0 percent and a beta of 1.18.
How much money will you invest in stock Y?


What is the beta of your portfolio?
Business
1 answer:
dedylja [7]3 years ago
6 0

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock                          X       Y

Expected return       14%     10%

Beta                          1.42     1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

or

14W + 10% - 10W = 17.6%

or

4W = 7.6

or

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

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siniylev [52]
<h2> ☞ANSWER☜ </h2>

<em>Tatlong Pamamaraan ng Pagsukat ng Pambansang Kita o Gross National Income</em>

<em>Pamamaraan Batay sa Gastos (Expenditure Approach) </em>

<em>Pamamaraan Batay sa Gastos (Expenditure Approach) Ang ekonomiya ng bansa ay may apat na sektor ito ay ang sambahayan, pamahalaan, bahay-kalakal, at panlabas na sektor. Ang bawat sektor na ito ay may pinagkakagastusan at ito ay ang Gastusing personal (C), Gastusin ng mga namumuhunan (I), Gastusin ng pamahalaan (G), Gastusin ng panlabas na sektor (X – M), Statistical discrepancy (SD, at Net Factor Income from Abroad (NFIFA). Ginagamit ang : GNI = C + I + G + (X – M) + SD + NFIFA bilang pormula sa pagkuwenta ng Gross National Income.</em>

<em>Pamamaraan Batay sa Kita (Income Approach)</em><em>Ito ay mula sa mga sahod ng mga manggagawa, buwis, kita ng mga korporasyon, at iba pa.</em>

Masusukat ang Gross Domestic Product sa pagsasamasama ng kabuuang halaga ng produksiyon; ang sektor ng industriya, agrikultura, at serbisyo ang pangunahin sa bahaging ito.

6 0
3 years ago
Many experts believe that marketing is the most important function in a company. Discuss the reasons this is a true statement. D
Kobotan [32]

Solution :

<u>Marketing is considered as an important function in a company.</u>

Marketing is an important function in any organization as it allows the business to maintain a long-lasting and an ever-present relationships with the audience. It increase the brand value and generates revenue for the organization.

<u>Marketing is not considered as an important function in a company.</u>

Besides marketing there are other function as well which are important for an organization. The human resource department is an important function which maintains the relationship between the employees and the management. It works for the welfare of its employees which is considered as asset to the organization.

Also attention should be given to manufacture a good product seeing the demand in the market that can be easily available and usable by the customer. More research should be done to develop a product that is best for its consumers.

6 0
3 years ago
A company has a net income of $190,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,351. Assumin
gladu [14]

Answer:

The company's days' sales in receivables is 22 days

Explanation:

In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:

Total Sales = Net Income / Profit Margin

= $190,000/9.4%=$2,021,276

Hence, Credit Sales = $2,021,276*0.85= $1,718,085

Accounts receivable turnover ratio = Credit sales / Accounts Receivable

= $1,718,085 /$106,351

= 16.15485

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The company's days' sales in receivables is 22 days

5 0
4 years ago
TP2.
Karo-lina-s [1.5K]

Answer and explanation:

As their name describes, <em>nonprofit entities</em> are organizations whose main plan is not to have revenues out of their operations. They usually provide social services to different sectors of the population and can handle their operations mainly thanks to charity and donations. While making their budgets, these organizations cannot estimate their revenues since they cannot take donations for granted. Instead, they estimate their expenses since they will be incurred for sure.

8 0
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NISA [10]

Positively framed messages for marketing are not more persuasive generally than negatively framed messages for marketing.

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The messages which are used for the marketing of a particular good or service are known as the marketing messages. These messages can either be framed in a positive manner or can be framed in a negative manner.

The positively framed message for marketing is not more persuasive than the negatively framed messages for the marketing. Customers are more attracted towards negative messages.

3 0
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