The portfolio beta would simply be the summation of the
weighted average of each beta.
Where weighted average of each beta is calculated as:
Stock weighted average = Stock proportion * Individual
beta
Therefore,
Stock A beta weighted average = 0.2 * 0.4 = 0.08
Stock B beta weighted average = 0.3 * 1.2 = 0.36
Stock C beta weighted average = 0.25 * 2.5 = 0.625
Stock D beta weighted average = 0.25 * 1.75 = 0.4375
The summation of all betas yield the overall portfolio
beta:
Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375
<span>Portfolio beta = 1.5025 ~ 1.5</span>
Answer:
$575
Explanation:
Given that,
Opening office supplies = $1,100
Closing office supplies = $475
Office supplies expense for the month = $1,200
Opening stock + Purchases - Closing stock = Consumption
$1,100 + Purchases - $475 = $1,200
$625 + Purchases = $1,200
Purchases = $1,200 - $625
= $575
Therefore, the amount of office supplies was purchased during February is $575.
Answer: Consultants
Explanation: They give their ideas and the company works according to that. If the company managers take decisions that suits them the employees and owners will adhere but the consultants might turn it down which affects the company immensely.
Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)
2. The higher after tax real gain is for Stephanie losing 35% of her income
which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.
Explanation
The inflation rate is not considered in the calculation because it's constant for both parties.
Answer and Explanation:
a. The crabs are a Common Good. They means can run out of supply if their use gets too much by society. Therefore, the decline of the Alaska king crab fishery can be explained by stating that the plenty types of boats such as those from California and Japan, has caused people to overfish, excessive fishing has brought about a decline in the supply of crabs.
b. There are 2 ways to avoid this
1. fishing permits have to be sold to the fishermen coming to fish for the crabs. Then the persons with the highest willingness to pay will come and buy the permits to fish.
2. Issuing just a particular amount of permits this would cause the fishermen to trade these permits. These open-market strategies have proved to be effective in organizing economic activity and are good stimulators in an economy.
c. They have been successful because regulations have been placed on fishing by the government. Also, if there are restrictions on other countries using up their spots and Canadians are the only ones fishing salmon, then there will be reduction in the decay rate of the population of the salmon, the salmon can easily repopulate, then Canadians would be able to come back the next year to fish again..
