Answer:
0.68
Explanation:
A portfolio consists of an investment of $7,500
The amount of common stock is 20
The portfolio beta is 0.65
Suppose one of the stock in the portfolio is sold with a beta of 1.0 for $7,500
The proceeds realized is then used to purchase another stock with a beta of 1.50
The first step is the to calculate the change in beta
Change in beta= 1.50-1
= 0.5
The next step is to divide the change in beta by the number of common stock
= 0.5/20
= 0.025
Therefore, the new beta can be calculated as follows
= 0.65+0.025
= 0.68
Hence the new portfolio's beta is 0.68
Answer: $4,800
Explanation:
First find the Annual holding cost:
= Average inventory * Cost of holding a unit
= 500/2 * 1 * 12 months
= $3,000
Then find the Annual ordering cost:
= Expected units to be sold/ Units ordered * Ordering cost
= 9,000/500 * 100
= $1,800
Annual Inventory cost = Annual holding cost + Annual ordering cost
= 3,000 + 1,800
= $4,800
Is this a paper you have write or do they have Any answer choices
Answer:
Return on investment = -0.71%
Explanation:
<em>The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment. </em>
<em>Dividend is the proportion of the profit made by a company which is paid to shareholders. </em>
<em>Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal</em>.
Therefore, we can can compute the return on the investment as follows:
Total Return on investment =
(Capital gain/ loss + dividend )/purchase price × 100
Capital loss = (184 -140) × 120 = - 480
Dividend = 427
Commission = 34 + 39 =-73
Net loss on investment = - 480 - 73 + 427= -126
Return on investment = -126
/(148× 120) = -0.71%
Return on investment = -0.71%
