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Cloud [144]
3 years ago
12

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock

T. The betas for these four stocks are .95, 1.12, 1.13, and 1.30, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Reptile [31]3 years ago
6 0

Answer:

Portfolio beta = 1.1075

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

  • w represents the weight of each stock in portfolio

Portfolio beta = 0.30 * 0.95  +  0.25 * 1.12  +  0.25 * 1.13  +  0.20 * 1.30

Portfolio beta = 1.1075

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Tara is responsible for the strategic planning retail planning process in her organization. She has identified the strategic opp
Stells [14]

Answer:

A. Evaluate strategic opportunities.

Explanation:

In strategic retail planning the steps begin with definition of business mission, conduct situation analysis, identify strategic opportunities, and the next stage is to evaluate the strategic opportunities.

In the evaluation stage we look at how feasible a strategic opportunity is. A choice is made between different alternatives to come up with the best choice for the business.

6 0
3 years ago
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20
Evgesh-ka [11]

Answer: 2016 CPI is 110

Explanation:

Given the following :

Base year = 2012

Cost of basket in 2012 = $50

Cost of basket in 2014 = $52

Coat of basket in 2016 = $55

The Consumer Price Index (CPI) is calculated using the formula :

CPI = (weighted cost item in current period / weighted cost of item in base period) × 100

Base period / year = 2012

Current period = 2016

Therefore, 2016 CPI equals;

($55 / $50) × 100

= 110

8 0
3 years ago
The balance sheet of the Algonquin Company reported assets of $50,000, liabilities of $22,000 and common stock of $15,000. Based
nlexa [21]

Answer:

c) $13,000.

Explanation:

Using the accounting equation;

Assets - liabilities = Owners' equity

Owners' equity is usually made up of the common stock and the retained earnings.

Therefore, given;

Assets = $50,000

Liabilities = $22,000

Owners' equity = $50,000 - $22,000

= $28,000

Owners' equity = Retained earnings + common stock

Retained earnings = $28,000 - $15,000

= $13,000

Amount for retained earnings is $13,000.

8 0
2 years ago
Hello everyone! I'am new over here!<br>May I have some friends?<br>(Indian☺️)​
Ipatiy [6.2K]
This is an education app... thanks for the points tho lol
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3 years ago
Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import. A
jok3333 [9.3K]

Answer:

The correct answer is (a)

Explanation:

After experiencing the comfort of a Japanese car, Anthony has decided cost-saving, by buying a Japanese car other than an SUV. Experience is an important factor which can significantly change a customer's mind over buying a product.  It can narrow a customer's decision and make it easier to decide, that is why most car companies offer a test drive.

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3 years ago
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