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
velikii [3]
3 years ago
14

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.16 and the total

portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio
Business
1 answer:
raketka [301]3 years ago
8 0

Answer:

Beta of stock A (βA) = 1.16

Beta of stock B (βB) = ?

Beta of the portfolio (βP) = 1

Weight of stock A (WA) = 50% = 0.50

Weight of stock B (WB) = 50% = 0.50

β(P) = βA(WA) + βB(WB)

1    =  1.16(0.50) + βB(0.50)

1    = 0.58 + 0.50βB

1 - 0.58 = 0.50βB

0.42 = 0.50βB

<u>0.42</u>  = βB

0.50

βB = 0.84

Explanation:

Beta of a portfolio equals beta of stock A multiplied by weight of stock A plus beta of stock B multiplied by weight of stock B. The beta of the portfolio is 1 because the portfolio is as risky as the market. Beta of stock A has been provided. The weight of stock A and stock B are 50% respectively because equal amount of fund is invested in each security.

You might be interested in
Asking potential dating partners for a date is most likely to be reinforced on a ________ schedule. variable-interval variable-r
marusya05 [52]

Answer:

Variable-ratio

Explanation:

A variable-ratio reinforcement schedule occurs when a behavior is reinforced based on a random number of displays. Thus, unlike fixed schedules, asking for dating partners do not always elicit a positive reward - which is why it is categorized as variable; the response can be positive or negative. It is also not an interval-based reinforcement schedule, since it is not based on time period. Variable-ratio schedules fit this behavior since asking someone out can get you a positive response once you tried hard enough or with enough people - but when it would happen, you cannot predict.

3 0
3 years ago
The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods
Setler79 [48]

Answer:

A) true

Explanation:

Compound interest can be regarded as

adding of interest gotten to the principal sum of a deposit or the principal sum of a loan. It's one that is gotten after reinvesting of ones interest instead of paying it out, as a result of this the interest that comes in

next period will be earned on the principal sum along with those interests accumulated before. It should be noted the process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods.

6 0
3 years ago
mazie is on the board of directors for belltone corporation, a corporation that manufactures hearing aids. mazie has not attende
DedPeter [7]

The shareholders have the authority to remove a director in this scenario when only one member of the board of directors refuses to step down.

What is board of directors?
A board of directors, also known as the board or simply the board, is an executive committee that collectively oversees the operations of an organisation. This organisation may be for-profit or nonprofit, such as a <u>company, nonprofit, or government agency</u>.

Governmental regulations, including the corporate law of the applicable jurisdiction, as well as the organization's possess constitution and by-laws, set forth the rights, obligations, and obligations of a board of directors. These authorities may determine the number of board members, the process for selecting them, and the frequency of their meetings.

The full membership of an organisation that has voting members, who typically elect the board members, is responsible to and may be subordinate to the board in such an organisation.

Because In general, the sole authority to remove a director rests with the shareholders. A resolution to remove a director must be approved by a majority of shareholders at a special general meeting.


To learn more about board of directors
brainly.com/question/28201050
#SPJ4

8 0
1 year ago
Town A, in one hour, can produce either 4 hotdog buns, or 10 sausages. Town B, in one hour, can produce either 8 hotdog buns, or
katrin [286]

Answer:

The answer is 27 hours

Explanation:

Solution

The Comparative advantage depends on  production of the lower opportunity cost

The opportunity cost of a production is =maximum production of other good /maximum production of the good

Now,

The opportunity cost of hot dog bun for town A =10/4=2.5

Thus,

The opportunity cost of hot dog bun for town B=6/10=0.6

So,

The  town B has a comparative advantage in hot dog buns and A in sausages

Town A will produce-only sausages and it will take the time of  

time in hours =total required a quantity of the good /number of products in an hour

Now,

The time for Town A for sausages=120/10=12 hours

The time for Town B for hot dog buns=120/8=15 hours

Therefore, The total time =12+15=27 hours.

6 0
3 years ago
Which section of a business plan gives details about a business’s core products and services?
yuradex [85]

Answer:

the executive summary. (more info below)

Explanation:

A strong executive summary is a convincing one. It shows the mission statement of the organization, along with a brief summary of its goods and services. It may also be a smart opportunity to clarify briefly why you are beginning your company and to give specifics about your background in the field that you are joining.These four key sections are what the 4 major sections of a business plan, the executive summary, marketing plan, key management bios, and financial plan.

hope this helped!

5 0
3 years ago
Other questions:
  • What does consumer vigilance mean
    15·2 answers
  • A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain
    7·1 answer
  • The Model Privacy notice was introduced in 2010. Which statement about the notice is true?
    12·1 answer
  • A company produces alternators for cars. They generally use a static budget with the following costs based on 8,000 units per mo
    11·1 answer
  • I'm lonely i need a bf
    15·2 answers
  • Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal ra
    12·1 answer
  • Which of the following is NOT a common feature of a
    5·1 answer
  • Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organizati
    5·1 answer
  • The owner of an undeveloped lot agrees to sell the lot to a buyer. The written agreement identifies the parties, describes the p
    12·1 answer
  • Explain other roles of quality circle as part of continuous improvement to process and systems​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!