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3 years ago

A portfolio with a beta of 1.26

Business

1 answer:

Vanyuwa [196]3 years ago

7 0

Answer:

The answer is C: is considerably more risky than the overall market.

Explanation:

The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportions of the investments in the portfolio. A beta of “1” indicates that its volatility is like the benchmarks. A number higher than “1” indicates more volatility, while lower numbers indicate more price stability. Diversification can help make your portfolios less volatile, allowing you to see steady growth without seeing wild swings in the value of your savings.

A zero-beta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. A zero-beta portfolio would have the same expected return as the risk-free rate.

Investors can determine the volatility of their whole portfolios by examining the beta of each holding. The calculation is simply a matter of adding up the beta for each stock and adjusting according to how much of each you own (weighted average).

In this case, the answer is: is considerably more risky than the overall market. A beta of 1,26 is 126% more risky than a free risk option, and 26% more risky than the overall market. It depends on the investor's resilience to risk whether the difference with the overall market is considerable or not.

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A firm in China sells toys to a U.S. department store chain. Other things the same, these sales:a. decrease U.S. net exports and

kari74 [83]

Answer: decrease U.S. net exports and increase Chinese net exports

Explanation: All things the same, the Chinese is exporting while the American store is importing. As the Chinese is exporting, the net export (the difference between a nation's exports and imports) in China increases and as the American is importing, the net export in America is decreasing.

8 0

3 years ago

Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can either a

AveGali [126]

Answer:

Each player can adopt a T for T strategy or a trigg er strategy. It is important to state that these strategies were not possible in a one-time game.

The equilibrium is that both players answer honest and each makes normal profit.

Both games, the P risoners' dilemma and this game, have a cooperative equilibrium in the long term. If a player employs a trig ger strategy or a T for T strategy, they can reach the cooperative honesty/honesty outcome.

In a short term, game equilibrium is not likely due to lying is more profitable than answer honestly deploying stated strategies.

Reference: NomCab HSEONE. “PS8- solution.” Academia , 2019.

6 0

3 years ago

A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter

grandymaker [24]

Answer:

5.52%

Explanation:

Cost of Furniture= $150,000

discount= 5.25% (120-day note)

To get the exporter's true effective annual financing cost, we have:

$150,000*[1-(0.0525*120/360)] = 147,375$

=(150,000/147,375) 365/120-1 = 5.52%

Therefore, the exporter's true effective annual financing cost is 5.52%

6 0

3 years ago

What does the phrase "like animals escaped from their caves" imply about the sun's impact on the children? (Paragraph 60)

Burka [1]

This question is about the phrase "Like animals escaped from their caves".

This phrase refers to the impact of sun on children. Children are innocent and they want to enjoy their life. They do not have worries of life.

They are free from stress. If weather is rainy or snowy it may hinder children from going out.

Children will have to stay inside their house due to bad weather conditions so they will loose their creativity.

The Phrase "Like animals escaped from their caves" means sun will compliment children to play and go outside.

The correct answer is B. The sun makes the children feel free.

Learn more at brainly.com/question/25859367

5 0

2 years ago

On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty:

Mama L [17]

Answer:

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

Explanation:

1. Preparation of the adjusting entries required at May 31.

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

(To record unbilled fees)

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

(12,300-4,150)

(To record supplies expense)

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

(To record wages expense)

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

(9000/3 months)

(To record rent revenue)

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

(To record depreciation expense)

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

7 0

3 years ago