Answer: b. The beta of the portfolio is higher than the highest of the three betas
Explanation:
The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.
For instance.
3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.
A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.
The portfolio beta will be;
= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)
= 1.98
Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.
Answer:
"Quantitative
" is the correct answer.
Explanation:
- Quantitative approaches qualitative data analysis as well as observational, analytical, or predictive interpretation of the data obtained by interviews, queries, and surveys and then using processing methods to modify focuses on gathering numerical data.
- It exposes students to the study broad targeted advertisements bodies as well as to manipulate this information in order to achieve intended outcomes.
Therefore the survey provided is a quantitative data collection tool.
Answer:
The following budgets are needed to calculate are as follows:
Direct labor budget
Direct materials budget
Manufacturing overhead budget
Explanation:
The three budgets put together are known as production budget which are as a result of sales budget.
When a company determines its projected sales ,it goes ahead to prepare its production budget in order to fulfill forecast sales as contained in the sales budget.The quantity to be manufactured is based on the opening inventory for the period, forecast sales quantity as well as the desired ending inventory quantity.
In order to determine production level,the opening inventory is added to forecast sales and desired ending inventory is subtracted to arrive at the estimated production units for the period.
Answer:
2. False
Explanation:
The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.
In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.
Answer:
The correct answer is Technology Adopters.
Explanation:
A technology adopter is someone who, taking into account the changes in the environment, accommodates them to try to give a better experience to the end user. Under this premise all the financial companies dedicated to money management work, since this allows for greater ease in credit management and effective communication with clients.
