Answer:
Rp = 3% + BP1 * 10.42% + BP2 * 6.1%
Explanation:
Portfolio A:
R_p = R_f + Beta1*Factor1 + Beta2*Factor2
32% = 3% + 1.6*F1 + 2*F2
Portfolio B
29% = 3% + 2.6*F1 - 0.2*F2
Solvig the equatios
3% = -F1 + 2.2*F2
F1 = 2.2F2 - 3%
F1 = 2.2F2 - 0.03
Substituting
29% = 3% + 2.6*(2.2F2 - 0.03) - 0.2F2
29% = 3% + 5.72F2 - 0.078 - 0.2F2
5.52F2 = 29% - 3% +0.078
5.52F2 = 0.26 +0.078
5.52F2= 0.338
F2 = 0.338/5.52 = 0.061
F1 = 2.2F2 - 0.03 = 2.2(0.061) - 0.03
= 0.1042
The return Beta relationship in this economy Rp = 3% + BP1 * 10.42% + BP2 * 6.1%
Answer: Holders of convertible bonds can choose how many shares of stock to receive at conversion
Explanation:
A convertible bond is a debt security that yields the payment of interest, but can also be converted into equity shares or common stock that are predetermined.
The option that holders of convertible bonds can choose how many shares of stock to receive at conversion is wrong. This is because the number I shares that will be eventually converted will already have been fixed.
1. Effective teamwork and high productivity are good indications of positive B. productivity goals.
Because I think the best purpose of effective teamwork will be the productivity goals.
2. John is a new employee at International Widget. Having studied human relations, he's eager to understand the supervisory style employed by his immediate supervisor. Which of the following is not especially important to John's insight?
B. Whether his supervisor enjoys particular sports or hobbies
Answer:
1. early binding enhances performance
2. late binding gives flexibility
Explanation:
this is generally the advantage of early binding. early binding gives room for better efficiency
.This is because it would be needless to reanalyze every time whenever something is declared. Early binding is for performance.
meanwhile late binding is known to have better flexibility and gives room for more polymorphism. this binding gives extension to runtime.
