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EleoNora [17]
3 years ago
8

You have a $50,000 portfolio consisting of Intel, GE, and Con Edison. You put $20,000 in Intel, $12,000 in GE, and the rest in C

on Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and .8, respectively. What is your portfolio beta?
Business
1 answer:
Marrrta [24]3 years ago
3 0

Answer: 1.048

Explanation:

First let us calculate the amount in Con Edison

= 50,000 - 20,000 - 12,000

= $18,000

To calculate the Portfolio Beta, you take the sum of the respective betas of the various stocks in the portfolio multiplied by their proportion in the portfolio.

Intel = 20,000/50,000

= 2/5

GE = 12,000/50,000

= 6/25

Con Edison = 18,000/50,000

= 9/25

Adding them up we will have

= (1.3*2/5) + (1*6/25) + (0.8*9/25)

= 1.048

If you need any clarification do react or comment.

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Golden Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require high
drek231 [11]

Answer:

A. The company paid a higher cost for the direct materials than allowed by the standards.

Explanation:

The following is a logical explanation for this variance:

Since, the standard quantity of raw materials to be used is 22 pounds x 500 units = 11000 pounds. The actual usage is 9500 pounds ony. Hence, variance in direct material price variance can be only due to higher cost of direct material purchased.

7 0
3 years ago
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products
ZanzabumX [31]

Answer:

See explanation below

Explanation:

Here, when the price of guppy gummies increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of cannes sold increases by 5%.

i.e, % change in price of guppy grummies = 5%

% change in quantity of raskels = -4%

% change in quantity of cannes = 5%

i) Find the Cross price elasticity of demand between guppy grummies and raskels. Use the expression below.

% change in quantity demanded of raskels / % change in price of guppy gummies

= -4% / 5%

= -0.8

Substitute goods have a negative cross price elasticity of demand. Since, the cross price elasticity of demamd here is negative, the goods are substitute.

It is recommended not to advertise raskels with guppy grummies

ii) Find the Cross price elasticity of demand between guppy grummies and cannes. Use the expression below.

% change in quantity demanded of cannes / % change in price of guppy gummies

= 5% / 5%

= 1

Complement goods have a positive cross price elasticity of demand. Since, the cross price elasticity of demamd here is positive, the goods complement each other.

It is recommended to advertise cannes with guppy grummies.

5 0
3 years ago
On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. through the purchase of 3,000 shares of Sleep's 10,0
puteri [66]

Answer: $18,000

Explanation:

Income from investment is the percentage of the acquired company's income that the company that acquired it will report as their own based on their percentage of ownership.

By purchasing 3,000 shares out of 10,000, Pillow Corp owns;

= 3,000 / 10,000

= 30% of Sleep Co.

These shares were bough on July 1 so the relevant period will be half a year.

At the end of the year, Pillow Corp will report 30% of half of Sleep Co. income as income from investment for the year.

= 30% * 120,000 * 0.5

= $18,000

3 0
3 years ago
Investors require an after-tax rate of return of 10% on their stock investments. Assume that the tax rate on dividends is 30% wh
IgorC [24]

Answer:

a. $28.5

b. 12.28%

c.  $29.18

d. 13.09%

Explanation:

a. let current price = p

p*1.10 = 2(1-0.3)+30

= 1.4+30/1.10

= 31.4/1.10

= 28.5

the current price of the stock is approximately 28.5 dollars

b. (30+2 /28.5)-1

= 32/28.5 - 1

= 0.1228

= 12.28%

expected before tax rate is 12.28%

c. 3(1-0.3)+30 / 1.10

= 3*0.7+30/1.10

= $29.18

d. before tax rate of return

= (3$ + 30-29.18)/29.18

= 0.1309

= 13.09%

it is now higher here given that given that a greater dividend causes more tax burden.

6 0
2 years ago
In a certain country, the labor force is 30 million and the unemployment rate is 5 percent. what is the amount of unemployed ind
meriva
Given the number of the total population who belonged in the work or labor force which is 30 million, and the recorded percentage of those who are unemployed is 5 percent, this means that a number of unemployed individuals in this country is 1,500,000. Hope this helps.
3 0
3 years ago
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