1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga_2 [115]
3 years ago
7

You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e., your total inve

stment is $150,000). The portfolio beta is equal to 1.3 . You have decided to sell one of your stocks which has a beta equal to 1.6 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 1.3 . What will be the beta of the new portfolio
Business
1 answer:
yarga [219]3 years ago
7 0

Answer: 1.28

Explanation:

The portfolio beta is a weighted average of the investments in the portfolio.

The new beta will therefore be;

= Portfolio beta - weighted beta of stock being sold + weighted beta of stock to be added

= 1.3 + ( 10,000/150,000 * 1.6) + ( 1.3 * 10,000/150,000)

= 1.3 - 0.11 + 0.09

= 1.28

You might be interested in
Bruce Church, Inc. is a company engaged in extensive commercial farming in Arizona and California. A provision of the Arizona Fr
dybincka [34]

Answer:

1. What is the Commerce Clause?

The Commerce Clause refers to the power held by Congress to regulate interstate commerce. Individual states can regulate commerce that takes place within their territory, but they cannot regulate trade between entities from their state and entities from other states.

2. Will the Arizona regulation withstand Commerce Clause scrutiny? Why or why not?

This is an actual court case and the US Supreme Court ruled against Arizona's regulation because it interferes with interstate commerce. The cantaloupes that Bruce Church produced were supposed to be sold in California, that means that 2 states are involved. The Commerce Clause applies whenever trade between 2 states are involved. An individual state's regulations cannot result in a burden for businesses engaged in interstate commerce.

8 0
3 years ago
Cody Mountain Sports is an outdoor sporting goods guiding service located in northern Wyoming. Cody Mountain Sports (CMS) primar
saveliy_v [14]

Answer:

Cody Mountain Sports (CMS)

T-accounts:

Cash

Date       Account Titles               Debit    Credit

Mar. 1     Common Stock       $100,000

Mar. 1     Prepaid Insurance                     $1,200

Mar. 4    Service Revenue       20,000

Mar. 19  Vehicle Expenses                       1,000

Mar. 22 Accounts Receivable  3,000

Mar. 24 Rent Expense                            4,000

Mar. 27 Salaries Payable                         1,000

Mar. 31 Cash dividends                          2,500

Accounts Receivable

Date       Account Titles               Debit    Credit

Mar. 15   Service Revenue       $3,000

Mar. 22  Cash                                          $3,000

Prepaid Insurance

Date       Account Titles               Debit    Credit

Mar. 1     Cash                             $1,200

Salaries Payable

Date       Account Titles               Debit    Credit

Mar. 18   Salaries Expense                     $10,000

Mar. 27  Cash                             $1,000

Common Stock

Date       Account Titles               Debit    Credit

Mar. 1     Cash                                       $100,000

Service Revenue

Date       Account Titles               Debit    Credit

Mar. 4    Cash                                         $20,000

Mar. 15  Accounts Receivable                   3,000

Salaries Expense

Date       Account Titles               Debit    Credit

Mar. 18   Salaries Payable        $10,000

Vehicle Expense

Date       Account Titles               Debit    Credit

Mar. 19   Cash                             $1,000

Rent Expense

Date       Account Titles               Debit    Credit

Mar. 24  Cash                             $4,000

Cash Dividends

Date       Account Titles               Debit    Credit

Mar. 31   Cash                           $2,500

Explanation:

a) Data and Analysis:

Mar. 1 Cash $100,000 Common Stock $100,000

Mar. 1 Prepaid Insurance $1,200 Cash $1,200

Mar. 4 Cash $20,000 Service Revenue $20,000

Mar. 15 Accounts Receivable $3,000 Service Revenue $3,000

Mar. 18 Salaries Expense $10,000 Salaries Payable $10,000

Mar. 19 Vehicle Expenses $1,000 Cash $1,000

Mar. 22 Cash $3,000 Accounts Receivable $3,000

Mar. 24 Rent Expense $4,000 Cash $4,000

Mar. 27 Salaries Payable $1,000 Cash $1,000

Mar. 31 Cash dividends $2,500 Cash $2,500

6 0
3 years ago
Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,
Elena L [17]

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

4 0
3 years ago
Peterson Manufacturing and the local steelworkers' union are having a negotiation breakdown. Peterson's management is keeping em
erica [24]

Answer:

B) lockout

Explanation:

Since in the question it is mentioned the manufacturing Peterson and the local steelworkers contain the negotiation breakdown also is keep out of the work place and runs the operations with non permanenet replacements

So here to overcome this breakdown, the lockout strategy is used

And all other given options are wrong.

7 0
3 years ago
If a consumer feels that the amount paid by the e&o company is insufficient and the licensee has no money, the consumer coul
Strike441 [17]
Truth in lending "trigger terms"MUST disclose amount or % of down payment and terms of repayment and APR spelled out

8 0
3 years ago
Other questions:
  • George is selling his house. he received an offer from katie for $200,000 but decided to counter-offer for $210,000. what does t
    11·2 answers
  • A method of saving that allows easy access to the money at low risk in case of emergency is A. a 401(k) account. B. home equity.
    15·1 answer
  • Flannigan Company manufactures and sells a single product that sells for $620 per unit; variable costs are $372. Annual fixed co
    9·1 answer
  • Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in
    13·1 answer
  • Jerry, the manager at Cayman's Inc., strongly believes that his subordinates prefer to be directed, avoid responsibility, and fr
    7·1 answer
  • Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10,000 units of ending wor
    10·1 answer
  • Which of the following is true? In a one-shot game, a collusive strategy always represents a Nash equilibrium. A subgame perfect
    14·1 answer
  • A company desires to sell a sufficient quantity of products to earn a profit of $300000. If the unit sales price is $32, unit va
    9·1 answer
  • _______________________ involves converting a data field from one format to another with the goal of harmonizing it.
    14·1 answer
  • Using the straight-line method, depreciation for 2024 and book value on december 31, 2024, would be:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!