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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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Explanation:

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2 years ago
ABD common stock is selling for $36.08 a share. The company has earnings per share of $.34 and a book value per share of $12.19.
Morgarella [4.7K]

Answer:

The market-to-book ratio is: $2.96

Explanation:

The market-to-book ratio compares the market value of an organization with its book value. The formula to calculate market-to-book ratio is equal to the market price per share divided by the book value per share. So,

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3 years ago
Can you breifly explain why stockholders' investment and revenues increase stockholders' equity, while dividends and expenses de
Scilla [17]
From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.

Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.

Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).
5 0
3 years ago
1. What does it mean to set up an “automatic deposit” and why is this a good savings strategy?
Andrews [41]

Answer:

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3 0
2 years ago
Economists consider governments to be "wasteful:" - whenever they over- or underallocate resources to a project. - only when the
ahrayia [7]

Answer:

The correct answer is: whenever they over- or under-allocate resources to a project.

Explanation:

A government is considered to be wasteful by the economists if it over-allocates or under-allocates resources on a project. Whenever resources are not efficiently or optimally allocated it is considered wasteful.

In case resources are over-allocated, the reason is given that the excess resources could have been used somewhere else.

In case resources are under-allocated, the reason is given that the given resources will not be able to provide the desired output.

3 0
2 years ago
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