Answer:
- a. What is the portfolio weight of each stock?
Stock J 0,5047
Stock K 0,4953
- b. What is the expected return of your portfolio?
Stock J 6,69%
Stock K 5,25%
Portfolio : 11,94%
Explanation:
To find the Beta that equals to market we need to know how much is x (weight of each stock in the portfolio) with an equation of one variable that equals to 1.
Portoflio with the same risk as the market means a beta of 1,00
1,23 (x) + 0,84 (1-x) = 1 Stock J = 0,4103
1,23x + 0,84 - 0,84x = 1 Stock K = 0,5897
1,23x - 0,84x = 0,16
0,39x = 0,16
x = 0,16/0,39
x = 0,4103
The expected return of the portfolio it's defined by the weight of each stock and the expected return.
Stock J 13,25% 0,5047 6,69%
Stock K 10,60% 0,4953 5,25%
Portfolio 1,00 11,94%
Answer: Wrongful Discharge
Explanation:
Wrongful discharge, in other words wrongful dismissal or wrongful termination, is the ending of an employment contract by the employer beecause the employer claims that the employee was in breach of his/her employer contract.
An employer might claim an employee is in breach of his/her contract for the following reasons:
Employee refuses to perform tasks that will break the law
Employee reporting a potential violation of a law
Employee participating in union activities
Employee performing a legal obligation, or exercising in a legal right.
Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.
Explanation:
0 1 2 3 4
Net Cashflows -370,000 160000 140000 80000 80000
Discount factor 12% 1 0.893 0.797 0.712 0.636
PV of cashflows -370000 142857 111607 56942 50841
NPV -7752
In accounting, the invoice 2/10, n/30 means that the customers has to pay $500 within 30 days. If he can pay earlier, say within 10 days from the date of purchase, a cash discount of 2% is given. If the customer pays on the 9th day, he would only have to pay
500(100% - 2%) = $490
That is true,however; they are not your own and you are doing yourself a disservice. Grades aren't everything.
