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Y_Kistochka [10]
3 years ago
13

Suppose the market follows a single index model, where the index has standard deviation of 15%. For a stock with firm-specific r

isk (in terms of STD) of 10% and standard deviation of 30%, what is the beta of the stock
Business
1 answer:
iogann1982 [59]3 years ago
3 0

Answer:

Explanation:

St deviation of stock σ = √( β² x σ₁² + σ₂² )

σ₁ = standard deviation of market = .15 and σ₂ is standard deviation of firm

Putting the values given

.30 = √ ( β² x .15² + .10² )

.09 =  β² x .0225 + .01

β² x .0225 = .08

β² = 3.5555

β = 1.88

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Answer:

buying a second house

Explanation:

bonds have a high chance of providing returns whereas the housing market is very hard to predict

6 0
3 years ago
he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $
Pavel [41]

Answer:

9.69%

Explanation:

Given the following :

Net income = $4819

Total asset = $38,200

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The internal growth rate is calculated thus ;

(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]

Return on asset = (Net income / total asset)

Return on asset = ($4,819 / $38,200)

Return on asset = 0.12615

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 0.3 = 0.7

Hence internal growth rate :

(0.12615 × 0.7) / 1 - (0.12615 × 0.7)

0.088305 / 1 - 0.088305

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= 0.0968580

= 0.0968580 × 100%

= 9.685%

= 9.69% ( 2 decimal places)

6 0
2 years ago
Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,0
Hoochie [10]

Answer:

$10,200

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The computation of the deferred income tax expense or benefit is shown below:

Favorable temporary difference = $50,000

Less:  Unfavorable temporary difference -$20,000

Net favorable temporary difference $30,000

We assume the tax rate is of 34%

So, the deferred tax expense is

= $30,000 × 34%

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By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above

3 0
2 years ago
1. If you were a manager conducting a job interview to applicants and you encountered the following querries
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4 0
2 years ago
Which approach describes how leaders act?
emmainna [20.7K]

Answer:

d. Behavioral

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Behavioral approach defines how a leader interact with its followers. It also includes the actions of a leader towards its followers.

In behavioral approach to leadership, anyone can become a leader if they want to, but such leader trainings and observations for effective leadership. The behavioral approach centers on interpersonal relationship between a leader and its followers. There is also an aspect of behavioral approach - task behavior which focuses on workers achieving set targets at workplace while relationship behavior help workers feel safe and comfortable by their leaders in their place of work.

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