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Shkiper50 [21]
3 years ago
6

An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio durin

g a _____.
Business
2 answers:
LiRa [457]3 years ago
8 0
An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a _____.
bull market
shusha [124]3 years ago
5 0

bull market ---- gradpoint

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Which type of rice will remain firm and separate when cooked properly?
Soloha48 [4]
Long-Grained rice. Hope this helps:)
5 0
3 years ago
Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%. a.
Aleksandr [31]

Answer:

a. The answers are as follows:

(i) Expected of Return of Portfolio = 4%; and Beta of Portfolio = 0

(ii) Expected of Return of Portfolio = 6.25%; and Beta of Portfolio = 0.25

(iii) Expected of Return of Portfolio = 8.50%; and Beta of Portfolio = 0.50

(iv) Expected of Return of Portfolio = 10.75%; and Beta of Portfolio = 0.75

(v) Expected of Return of Portfolio = 13%; and Beta of Portfolio = 1.0

b. Change in expected return = 9% increase

Explanation:

Note: This question is not complete as part b of it is omitted. The complete question is therefore provided before answering the question as follows:

Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%.

a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0

b. How does expected return vary with beta? (Do not round intermediate calculations.)

The explanation to the answers are now provided as follows:

a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0

To calculate these, we use the following formula:

Expected of Return of Portfolio = (WS&P * RS&P) + (WT * RT) ………… (1)

Beta of Portfolio = (WS&P * BS&P) + (WT * BT) ………………..………………. (2)

Where;

WS&P = Weight of S&P = (1) – (1v)

RS&P = Return of S&P = 13%, or 0.13

WT = Weight of T-bills = 1 – WS&P

RT = Return of T-bills = 4%, or 0.04

BS&P = 1.0

BT = 0

After substituting the values into equation (1) & (2), we therefore have:

(i) Expected return and beta of portfolios with weights in the S&P 500 of 0 (i.e. WS&P = 0)

Using equation (1), we have:

Expected of Return of Portfolio = (0 * 0.13) + ((1 - 0) * 0.04) = 0.04, or 4%

Using equation (2), we have:

Beta of Portfolio = (0 * 1.0) + ((1 - 0) * 0) = 0

(ii) Expected return and beta of portfolios with weights in the S&P 500 of 0.25 (i.e. WS&P = 0.25)

Using equation (1), we have:

Expected of Return of Portfolio = (0.25 * 0.13) + ((1 - 0.25) * 0.04) = 0.0625, or 6.25%

Using equation (2), we have:

Beta of Portfolio = (0.25 * 1.0) + ((1 - 0.25) * 0) = 0.25

(iii) Expected return and beta of portfolios with weights in the S&P 500 of 0.50 (i.e. WS&P = 0.50)

Using equation (1), we have:

Expected of Return of Portfolio = (0.50 * 0.13) + ((1 - 0.50) * 0.04) = 0.0850, or 8.50%

Using equation (2), we have:

Beta of Portfolio = (0.50 * 1.0) + ((1 - 0.50) * 0) = 0.50

(iv) Expected return and beta of portfolios with weights in the S&P 500 of 0.75 (i.e. WS&P = 0.75)

Using equation (1), we have:

Expected of Return of Portfolio = (0.75 * 0.13) + ((1 - 0.75) * 0.04) = 0.1075, or 10.75%

Using equation (2), we have:

Beta of Portfolio = (0.75 * 1.0) + ((1 - 0.75) * 0) = 0.75

(v) Expected return and beta of portfolios with weights in the S&P 500 of 1.0 (i.e. WS&P = 1.0)

Using equation (1), we have:

Expected of Return of Portfolio = (1.0 * 0.13) + ((1 – 1.0) * 0.04) = 0.13, or 13%

Using equation (2), we have:

Beta of Portfolio = (1.0 * 1.0) + (1 – 1.0) * 0) = 1.0

b. How does expected return vary with beta? (Do not round intermediate calculations.)

There expected return will increase by the percentage of the difference between Expected Return and Risk free rate. That is;

Change in expected return = Expected Return - Risk free rate = 13% - 4% = 9% increase

4 0
2 years ago
What is the purpose of cost accounting iss?
vitfil [10]

The main purpose of cost accounting is to find out the cost of the various processes in the business so that selling prices can be fixed appropriately.

<h3>What is cost accounting?</h3>

This is an accounting method that allows companies to find out the cost of various processes and transactions they embark on.

Knowing these costs will enable the company to know the price it can charge on goods so that it can recoup these costs and make profits.

Find out more on cost accounting at brainly.com/question/24516871.

#SPJ12

3 0
1 year ago
You are the General Manager of a regional chemical company. In the course of producing your bulk chemicals, large amount of part
34kurt

Answer:

The answer is explained below

Explanation:

The companies board of directors as well as you would consider whether it is best to install the scubber system. When determining whether to install the scubber system both short and long term consequences are to be considered. If presently, the level of pollution is legal, you need to consider if in the future it would be legal? if the installation of the scubber system would affect the public relations of the company. After considering all this, it would be better to install because the pollution can lead to death, and the neighborhood can sue the company. Also the EPA regulations can be regulated.  

5 0
3 years ago
Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a
iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

1-  financial disadvantage of accepting the special order is loss of $60,000

2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

6 0
3 years ago
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