Answer:
1.25
Explanation:
Calculation for What is the beta of a 3-stock portfolio
Portfolio beta = (.25 *0.9) + (.4 *1.05) + (.35 *1.73)
Portfolio beta = .225 + .42 + .606
Portfolio beta = 1.25
Therefore the beta of a 3-stock portfolio will be 1.25
Answer:
Explanation:
- The bond has 8% coupon paid semiannually, and those bonds sell at their par value.
- Since the bond sales at par value, Market rate (Yield) = Coupon rate =8%
<u>Second bond:</u>
- Semiannual coupon amount = 1000 x 8%/2 = $40
- Time to maturity = 6 years = 12 semiannual periods
- Semiannual Yield = 8%/2 = 4%
To get price of this bond we will use PV function of excel:
= PV (rate, nper, pmt, fv, type)
= PV (4%, 12, -40, -1000, 0)
= $1053.32
- Price of this bond = $1,053.3
Answer:
Rare resources
Explanation:
Rare resources are unique resources that is not controlled or possessed by many competing firms. Only a small number of competing companies control it. It usually stands out by being distinctive among the set of future competitors. Rare resources are short in supply and capable of persisting over an extended time, this makes it a source of competitive advantage for a company.
Answer:
Profit of $8,500
Explanation:
Strike Price = $90,000
Premium = $1,500
Break even point = Strike price - Premium
Break even point = $90,000 - $150
Break even point = $88500
Profit = Break even point - Share price
Profit = $88,500 - $80,000
Profit = $8,500