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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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Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in
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Answer:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

Nov 15

Dr Accounts payable 8,650

Cr Merchandise inventory 346

Cr Cash 8,304

Explanation:

Preparation of Journal entries

Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:

Nov 05

Dr Merchandise inventory 9,000

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(900 units *$10 per units)

Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:

Nov 07

Dr Accounts payable 350

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(35*$10 per units)

Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:

Nov 15

Dr Accounts payable 8,650

(9,000- 350)

Cr Merchandise inventory 346

(4%*8,650)

Cr Cash 8,304

(8,650-346)

8 0
3 years ago
Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfo
inessss [21]

Answer:

The correct answer is letter "B": unfavorably; increases.

Explanation:

As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to <em>increase </em>the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -<em>continuous increase in price due to continuous increase in demand</em>- appear decreases.

However, if people have fewer sources of debt, private investment decreases, causing an <em>unfavorable </em>panorama for financial institutions offering large portfolios of assets.

8 0
3 years ago
A producer's market means higher prices.<br><br><br> True False
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The answer is True .
6 0
3 years ago
1. The Whitehall study found the following link between stress, our position on the social hierarchy, and how we put on weight:
Iteru [2.4K]
The answer for this is A
3 0
3 years ago
What can the fair test help you avoid?
marishachu [46]

Fair test can help you avoid wrong answers as they are used in finding right answers in research.

<h3>What is fair test?</h3>

Fair test is used to investigate in research, the researcher keeps some variable as constant while other are changed and not constant to get effective answers. Fair test can be used to generate accurate answers in research.

Therefore, fair test can help you avoid wrong answers as they are used in finding right answers in research.

Learn more on fair test below,

brainly.com/question/6791607

#SPJ11

5 0
1 year ago
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