Answer:
$7073.68
Explanation:
Data provided in the question:
Worth of portfolio = $15,000
Amount invested in stock A = $6,000
Beta of stock A = 1.63
Beta of stock B = 0.95
Beta of portfolio = 1.10
Now,
Beta portfolio = ∑(Weight × Beta)
let the amount invested in Stock B be 'x'
thus,
1.10 = [($6,000 ÷ $15,000 ) × 1.63] + [( x ÷ $15,000 ) × 0.95 ]
or
1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]
or
0.448 = [( x ÷ $15,000 ) × 0.95 ]
or
x = ( 0.448 × $15,000 ) ÷ 0.95
or
x = $7073.68
Answer:
D. is the rate that banks charge each other for short-term loans of excess reserves.
Explanation:
The federal reserves require banks to maintain a certain amount in their vaults to cater for possible withdraws. At the close of business every day, banks have to confirm they have the required amount. Should a bank fail to meet the requirement, it can borrow from other banks that have a surplus. The interest rate that banks charge each other for these transactions is the fed fund rate.
The Fed set the fund rate. It may increase or decrease it depending on the prevailing market condition. The banks use the fund rate set to determine the interest rates to be charged on loans and mortgages. A high fund rate means high-interest rates.
Answer:
$3.2 million
Explanation:
The revenue and gross profit or loss which the company identify in the first and second year if it recognizes revenue upon contract completion is calculated below.
Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million
Revenue to recognize = $8m/$20m*$28m = $11.2 million
Gross Profit = Revenue recognized less costs incurred
= $11.2m - $8m = $3.2 million
Answer:
difference between supplies = $4.68
Explanation:
cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 10%) = $648
freight cost = $648 x 2.5% = $16.20
discount for early payment = $648 x 2% = $12.96
total cost = $651.24
cost of merchandise from wholesaler if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 8%) = $662.40
discount for early payment = $648 x 1% = $6.48
total cost = $655.92
difference between supplies = $4.68
Answer:
Because the freeze has damaged the orange crop, the supply curve wil shift to the left, since suppliers now have less oranges available for sale.
This will cause the equilibrium quantity to fall, because there is less produce available, and the equilibrium price to rise, because all else being equal demand remains unaffected, and now, more consumers will scramble for a lesser amount of the good.
