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inessss [21]
3 years ago
6

You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock

T. The betas for these four stocks are 0.69, 1.76, 1.61, and 1.02, respectively. What is the portfolio beta
Business
1 answer:
zheka24 [161]3 years ago
8 0

Answer:

The portfolio beta is 1.2

Explanation:

Portfolio Beta is the average bet of the all investments in portfolio. This beta is calculated on the basis of weightage of each investment in the portfolio.

Portfolio Beta = ( Beta of Stock Q x Weightage of Stock Q ) + ( Beta of Stock R x Weightage of Stock R ) + ( Beta of Stock S x Weightage of Stock S ) + ( Beta of Stock T x Weightage of Stock T )

Portfolio Beta = ( 0.69 x 25% ) + ( 1.76 x 20% ) + ( 1.61 x 20% ) + ( 1.02 x 35% )

Portfolio Beta = 0.1725 + 0.352 + 0.322 + 0.357 = 1.2035

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Suppose that a coal factory emits pollution into the air and that a nearby neighborhood is harmed by this pollution. It would co
DanielleElmas [232]

Answer: The right answer are: a)the neighborhood will negociate to get the pollution cleaned up. b)the neighborhood will required the coal factory to clean up the pollution

6 0
3 years ago
5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located ware
damaskus [11]

Answer:

Explanation:small number of centrally locates warehouses will make their products readily available in needed small quantities. While having a larger warehouse nearer to the end customers will make the product easily accessible

8 0
2 years ago
If interest rates in general were to fall, 1. the prices of existing bonds would rise 2. the prices of existing bonds would fall
IRINA_888 [86]

Answer:

1. the prices of existing bonds would rise

Explanation:

General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.

Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.

So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.  

7 0
3 years ago
A store has two different coupons that customers can use. One coupon gives the customer $15 off their purchase, and the other co
andrey2020 [161]

Answer:

16.25;

g(f(x)) ;

76 ;

f(g(x))

Explanation:

For 15 off

f(x) = x - 15

For 35% off

g(x) = (1 - 0.35)x = 0.65x

g(x) = 0.65x

A.)

For the $15 off coupon :

f(x) = x - 15

f(x) 40 - 15 = 25

For the 35% coupon :

g(x) = (1-0.35)x

g(x) = 0.65(25)

g(x) = 16.25

B.)

Applying $15 off first, then 35%

Here, g is a function of f(x)

g(f(x))

Here g(x) takes in the result of f(x) ;

For the $140 off coupon :

f(x) = x - 15

f(140) = 140 - 15 = 125

For the 35% coupon :

g(125) = (1-0.35)x

g(124) = 0.65(125) = $81.25

C.)

x = 140

g(x) = 0.65x

g(140) = 0.65(140)

g(140) = 91

f(x) = x - 15

f(91) = 91 - 15

f(91) = 76

D.)

Here, F is a function of g(x)

f(g(x))

f(x) = (0.65*140) - 15

6 0
2 years ago
0.5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 3Item 3 0.5 points Agee Storage issued 37
trapecia [35]

Answer:

Decline in Agee's total paid up capital is $14,000,000

Explanation:

<u>Computation of decline in Paid-Up capital</u>

Particulars                                        Amount

Cash paid for first repurchase      $10,000,000

(1 million shares*$10)

Value of first purchase                   $12,000,000

(1 million * $12                                 <u>                        </u>

Benefit on first repurchase            $2,000,000

Cash paid for second repurchase = $16,000,000

(1 million shares * $16)

Value of second repurchase            $12,000,000

(1 million * $12)                                    <u>                        </u>

Reduction in Total paid-in-capital   <u>$14,000,000</u> ($2 million + $12 million)

8 0
3 years ago
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