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balu736 [363]
3 years ago
5

An investor wishes to invest equal amounts in three stocks and to achieve a portfolio beta of 1.2. If stock A has a beta of 0.9

and stock B has has a beta of 1.1. What must be the beta of stock C? a. 1.8 b. 1.2 c. 0.7 d. 1.6
Business
1 answer:
photoshop1234 [79]3 years ago
8 0

Answer:

Beta of Stock C is 1.6

correct option is d. 1.6

Explanation:

given data

portfolio beta = 1.2

stock A beta = 0.9

stock B beta = 1.1

to find out

beta of stock C

solution

we will apply here Portfolio Beta equation that is express as

Portfolio Beta = ( Weight of Stock A × Beta of Stock A ) + ( Weight of Stock B   × Beta of Stock B ) +  ( Weight of Stock C × Beta of Stock C )    ......................1

here weight for each stock = \frac{1}{3}

put here value we will get

1.2 =  ( \frac{1}{3} × 0.9 ) + ( \frac{1}{3} × 1.1 ) +  ( \frac{1}{3} × Beta of Stock C )

solve it we will get

Beta of Stock C = 1.599

so Beta of Stock C is 1.6

and correct option is d. 1.6

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<span>The gdp price index for that year is 300.
This is how we calculate this;
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=100 x 240 / 80
=24000/80
</span>Gdp price index = 300
5 0
3 years ago
The highest value of total cost was $ 710 comma 000 in June for Horchata​ Beverages, Inc. Its lowest value of total cost was $ 5
marta [7]

Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )

= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

= High total cost - (High production volume × Variable cost per unit)

= $710,000 - (13,000 units × $20)

= $710,000 - $260,000

= $450,000

We simply applied the above formula

6 0
3 years ago
Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, pe
Makovka662 [10]

Answer: Marketing Strategy

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Marketing strategies gives the business a better edge in its industry as it gives the business better sales.

5 0
2 years ago
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to
stealth61 [152]

Answer:

C. Joint Venture

Explanation:

A Joint Venture is a business agreement in which two or more parties agree to combine their resources in order to achieve an objective.

Companies use Joint Ventures to partner with foreign businesses in order to enter their market. This is what China is proposing in the scenario above, and it has been done in order that China might have a stake in those businesses.

<u>Advantages of a Joint Venture include:</u>

  • Access to new markets.
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  • Access to expertise ans technology, and so on.

7 0
3 years ago
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Montano1993 [528]

Answer:

Yes I do.

Explanation:

1. Serve others.

2. Plan a community bazar to gain founds and donate them to local foundations with social objetives.

3. Organize a cinema at park festival for help vulnerable population to enjoy and recreate different activities that they normally don't have access to.

4. Go to a geriatric and plan some activities like chess contest, dance and teather to help them to feel distracted of the loneliness for a while at least one a week.

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6. Paste some motivational notes in random places. (subway, restaurants, public bathrooms).

8 0
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