Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
Answer:
Total amount= $2,055.38
Explanation:
Simple interest is defined as the amount that a lender charges the borrower for the funds collected. The borrower pays back the principal collected and the interest to the lender.
Simple interest is calculated as principal multiplied by time multiplied by interest rate.
Interest= principal * time * rate
Interest= 1,890* 2.5* 0.035
Interest= $165.375
Therefore total amount of money in the account is
Total amount= principal + Interest
Total amount= 1890+ 165.375
Total amount= $2,055.375~ $2,055.38
Answer:
All i know is no its not illegal at all .
Explanation:
Answer:
The portfolio’s new beta will be 1.125
Explanation:
In this question, we are interested in calculating the portfolio’s new beta given the value of the beta of the stock which is used in replacing it.
We apply a mathematical approach here.
Mathematically;
Portfolio beta=Respective beta * Respective investment weight
=(50,000/200,000*1.5)+(50,000/200,000*0.8)+(50,000/200,000*1)+(50,000/200,000*1.2)
= 0.375 + 0.2 + 0.25 + 0.3 = 1.125
Answer:
Dividend yield is 2.91 %.
Explanation:
Dividend yield = Annual Dividend per Share / Stock Price per Share × 100
<em>where,</em>
Annual Dividend per Share = Total Dividends ÷ Total Number of Shares
= $835 ÷ 500
= $1.67
<em>then,</em>
Dividend yield = $1.67 / $57.48 × 100
= 2.905 or 2.91 %
