Answer:
Beta of Stock C is 1.6
correct option is d. 1.6
Explanation:
given data
portfolio beta = 1.2
stock A beta = 0.9
stock B beta = 1.1
to find out
beta of stock C
solution
we will apply here Portfolio Beta equation that is express as
Portfolio Beta = ( Weight of Stock A × Beta of Stock A ) + ( Weight of Stock B × Beta of Stock B ) + ( Weight of Stock C × Beta of Stock C ) ......................1
here weight for each stock = 
put here value we will get
1.2 = ( × 0.9 ) + ( × 1.1 ) + ( × Beta of Stock C )
solve it we will get
Beta of Stock C = 1.599
so Beta of Stock C is 1.6
and correct option is d. 1.6
Answer:
i=4%
Explanation:
this problem is possible to solve applying the principle of future value, keep in mind the next formula:
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
the difference here is that we must solve n so we can do:
so i=4%
Answer: A Corporation, because she will need financing to get started.
Explanation:
As Annabeth would like to buy a factory to begin making the parts, she would would need a huge cash outlay to get started. By starting a Corporation, she can raise cash easier from the shareholders as well as utilize the knowledge and expertise of others who will join the company to help her in areas she might not be well versed in such as in Accounting or business administration.
Another reason a Corporation would be better is because of the realization of her longer term plans. A Corporation is more likely to expand in the the future which will enable Annabeth realize her dreams of selling to Europe and South America. Indeed, she has a better chance of achieving that sooner rather than later.
Answer:
The idea that a higher price means the buying power of income has been reduced.
Explanation:
The income effect is defined as the change in consumption of goods of services after a change of income. If income grows, it is expected that the consumption of goods and services will also grow (this can be measured by the marginal propensity to consume), and viceversa.
If prices rise, the buying power of income will be reduced even if income has grown. If prices rises even more than income, the buying effect of income will fall even more. This two statements can be both explained by the income effect concept.
