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ale4655 [162]
3 years ago
8

You have a $56,000 portfolio consisting of Intel, GE, and Con Edison. You put $22,400 in Intel, $14,400 in GE, and the rest in C

on Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and .8, respectively. What is your portfolio beta?
Business
1 answer:
8090 [49]3 years ago
4 0

Answer:

1.05142

Explanation:

Given that,

portfolio consisting of Intel, GE, and Con Edison = $56,000

Amount put in Intel = $22,400

Amount put in GE = $14,400

Amount put in Con Edison = $19,200

Beta for Intel = 1.3

Beta for GE = 1

Beta for Con Edison = 0.8

Weight of investment of Intel:

= Amount put in Intel ÷ Total investment

= $22,400 ÷ $56,000

= 0.4 or 40%

Weight of investment of GE:

= Amount put in GE ÷ Total investment

= $14,400 ÷ $56,000

= 0.2571 or 25.71%

Weight of investment of Con Edison:

= Amount put in Con Edison ÷ Total investment

= $19,200 ÷ $56,000

= 0.3429 or 34.29%

Port folio beta:

= Beta × Weight of investment

= (1.3 × 40%) + (1 × 25.71%) + (0.8 × 34.29%)

= 0.52 + 0.2571 + 0.27432

= 1.05142

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2 years ago
Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR), but not in the min
Elan Coil [88]

Answer: D. Combining and individual fund financial statements.

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3 years ago
A quality improvement project was initiated in an industry that has seasonal demand for their product, coolers/ice chests, which
gulaghasi [49]

Answer:

A. Histogram

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2 years ago
Read 2 more answers
8. When Jill Thompson received a large settlement from an automobile accident,
Dennis_Churaev [7]

Answer:

The amount of fees that Jill will pay this year=$248.20

Explanation:

Expense ratio is a measure of how much fees that fund management firms charge their clients for their investments services. These fees cover administrative and operational costs. In our case, the expense ratio will be expressed as the fees that Jill will pay as a portion of the total amount she invested. The expense ratio can be expressed as shown;

ER=C/A

where;

ER=expense ratio

C=total funds cost

A=total funds assets

In our case;

ER=0.17%=0.17/100=0.0017

C=unknown to be determined

A=$146,000

replacing;

C=ER×A

C=0.0017×146,000=$248.20

The amount of fees that Jill will pay this year=$248.20

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3 years ago
The inventory of Cullumber Company was destroyed by fire on March 1. From an examination of the accounting records, the followin
maria [59]

Answer:

a. Merchandise lost by fire value  = $20,760

b. Merchandise lost by fire value  = $25,770

Explanation:

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= $49,900

Net purchase cost = $31,000 + 1,200 - $1,500

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Merchandise lost by fire value  = $20,760

b. Gross profit = $49,900 × 30%

= $14,970

Cost of goods sold = $49,900 - $14,970

= $34,930

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $34,930 = $30,000 + $30,700 - ending inventory

ending inventory = $25,770

Merchandise lost by fire value  = $25,770

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