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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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Surfer sam company produced 4,000 units of product that required 2.5 standard hours per unit. the standard fixed overhead cost p

Svet_ta [14]

The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000

$Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000$

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

$Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400$

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

$Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)$

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2 years ago

Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The

lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

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2 years ago

The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n

fgiga [73]

Answer: $1.50

Explanation:

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We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

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2 years ago

What tends to cause structural unemployment?<br> Economics

Yuri [45]

Answer:

Structural unemployment occurs because workers lack the requisite job skills or live too far from regions where jobs are available and cannot move closer. Jobs are available, but there is a serious mismatch between what companies need and what workers can offer.

Explanation:

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3 years ago