All categories

3 years ago

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.

Business

1 answer:

Reika [66]3 years ago

8 0

Answer:

Weight of Golden Seas in the portfolio = 1.40%

Weight of Jacobs and Jacobs in the portfolio = 2.42%

Weight of MAG in the portfolio = 88.94%

Weight of PDJB in the portfolio = 7.24%

Explanation:

This can be done as follows:

Step 1: Calculation of value of each stock

Value of stock can be calculated using the following formula:

Value of a stock = Price per share * Number of shares outstanding................ (1)

Using equation (1), we have:

Value of Golden Seas = $14 * 1.43 millions = $20.02 millions

Values of Jacobs and Jacobs = $24 * 1.44 millions = $34.56 millions

Value of MAG = $43 * 29.52 millions = $1,269.36 millions

Values of PDJB = $9 * 11.48 millions = $103.32 millions

Step 2: Calculation of value of the portfolio

This can be obtained by adding the values of all the stocks in step 1 as follows:

Value of the portfolio = Value of Golden Seas + Values of Jacobs and Jacobs + Value of MAG + Values of PDJB = $20.02 millions + $34.56 millions + $1,269.36 millions + $103.32 millions = $1,427.26 millions

Step 3: Calculation of weight of each stock in the portfolio

The weight of each stock in the portfolio is obtained as the values of each stock divided by the value of the portfolio. This can be calculated as follows:

Weight of Golden Seas in the portfolio = $20.02 millions / $1,427.26 millions = 0.0140, or 1.40%

Weight of Jacobs and Jacobs in the portfolio = $34.56 millions / $1,427.26 millions = 0.0242, or 2.42%

Weight of MAG in the portfolio = $1,269.36 millions / $1,427.26 millions = 0.8894, or 88.94%

Weight of PDJB in the portfolio = $103.32 millions / $1,427.26 millions = 0.0724, or 7.24%

You might be interested in

Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe

9966 [12]

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Buy:

Purchase price= $65

Make:

Direct materials= $28 per unit

Direct labor= $8 per unit

Variable factory overhead= $17 per unit.

Fixed costs for the plant would increase by $76,000.

We need to calculate the total cost for each option. The best option is the one with lower total costs:

Buy:

Total cost= 60,000*65= $3,900,000

Make:

Total cost= 60,000*(28 + 8 + 17) + 76,000

Total cost= 3,180,000 + 76,000

Total cost= $3,256,000

It is cheaper to make the units in-house.

4 0

3 years ago

A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production

Novosadov [1.4K]

Answer:

The correct answer to the following question is Unfavorable direct material cost variance .

Explanation:

Unfavorable variance can be defined as an accounting term which describes situations where the actual cost that a company would bear is more than the standard cost. This will alert a management that there will be fall in the expected profit of the company. In the given question , same situation will take place if the production manager decides to buy high grade materials which will cause more cost and thus will lead to decrease in profit.

6 0

4 years ago

Verizon Wireless has just announced a 2-for-1 stock split, effective immediately. Prior to the split, Verizon Wireless had a mar

stiks02 [169]

Answer:

hsjsmsjsjejekwkwjehevebjsus

8 0

4 years ago

What is the best conclusion given the following information about research technicians employed in the scientific wing of a phar

nataly862011 [7]

Answer:

(A) There is a disparate impact on males as research technicians.

Explanation:

Both disparate impact and disparate treatment mean to bias b. A different effect is regularly alluded to as accidental separation, though different treatment is deliberate. The terms opposite effect and antagonistic treatment are now and again utilized as another option.

Disparate impact happens when a strategy, practices, decides, or different frameworks that have all the earmarks of being unbiased bring about an unbalanced effect on an ensured gathering. Divergent treatment is a deliberate business separation. For instance, testing specific expertise of just individual minority candidates is a different treatment.

4 0

3 years ago

A credit union is different from a bank mainly because

Kaylis [27]

Answer:D:(A cooperative lending institution for a particular group.)

Explanation:

6 0

3 years ago

Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below.

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.